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2014 (7) TMI 1058 - AT - Income TaxClaim of partner’s salary u/s 40(b) against income disclosed during survey – Held that:- The contention of the assessee is accepted that if statement of the partner at the time of survey was to be relied for making this addition/disallowance, the statement should not be relied in part and should have been relied in full - at the time of survey, assessee disclosed the entire income as business income, the AO was not justified in bifurcating the same into income from other sources and income from business or profession – thus, the order of the CIT(A) treating the disclosed income of the assessee as business income and allowing the partner's remuneration u/s. 40(b) of the Act is upheld – Decided against Revenue. Unexplained expenses u/s 69C - Assessee has not claimed any expenditure for earning such job work receipt ignored – Held that:- CIT(A) was rightly of the view that the AO should have made the disallowance on the basis of same evidence or material on record - no defect in the books of accounts and documents maintained by the assessee has been found by the assessee, therefore the addition made by AO was only on the basis of suspicion or bare guess which is not sustainable in law – there was no infirmity in the finding of the CIT(A) – Decided against Revenue. Addition of Business & Profession - Net income returned is less than the disclosure amount – Held that:- CIT(A) was of the view that the amount as income from business and profession - assesseee has already shown the total of both the amounts as business income in the return of income and has also paid tax on it, there is no justification on the part of the AO for making an addition while computing the income of the assessee and the has rightly deleted by CIT(A) – thus, the order of CIT(A) is upheld – Decided against Revenue.
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