Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 270 - AT - Income TaxRejection of books of accounts maintained u/s 145 – Addition on the basis of loose papers of the amount of Rs. 12 lacs – Held that:- There was direct nexus between the business activity of the assessee and the loose papers found during the course of survey and there was no evidence on record to indicate that Assessee had any other source of income and the income was assessable under the head "profits and gains of business or profession" - Income declared at the time of survey was on the basis of loose papers found at that time and the books of accounts were not written at that time and the books of accounts were written later after considering the loose paper transactions - Rejection of books was not justified when no defects were found in the books - Revenue has not brought any material on record to controvert the above findings – Addition deleted – Decided against the Revenue. Disallowance of Partner’s salary on the ground of it being excessive – Disclosure made during survey u/s 133A to be included for computation of partner’s salary u/s 40(b) of the Income Tax Act – Held that:- Since the disclosure made during the survey is on account of business income, the same cannot be excluded for applying section 40(b) to compute allowable deduction in respect of partners remuneration – Reliance has been placed on the judgment in the case of Jamnadas Muljibhai [2005 (1) TMI 366 - ITAT RAJKOT],wherein ITAT has upheld assessee's claim that source of investment in excess stock found during the course of survey was out of business income as the same was not controverted by the Department by bringing any material in this regard on record – Decided against the Revenue.
|