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2018 (5) TMI 1872 - AT - Income TaxDeemed income covered u/s 69, 69B & 69C - treatment to surrendered income during the course of survey u/s 133A - CIT-A treating the same as business income and allowed the same to be set off against business loss/depreciation loss or any other expenses - HELD THAT:- Not a single item surrendered suggests that the same does not relate to normal business carried out. Further, the department could not find any source of income during the survey except the business of the appellant. All purchases and sales, are fully vouched. All entries of the surrendered amount have been recorded in the business heads of the assessee in its books of accounts. Once the surrender had been accepted by the department, the Assessing Officer cannot tax it as income u/s 69, 69A and 69B during the assessment proceedings. Surrender made by the assessee on account of stock, construction of factory, discrepancy in trade creditors can be said to be from the earnings of the business as the assessee, a company has been proved to be in no other activity except in the business of Electronics as declared before the Revenue Authorities. AO has also fairly treated the income as profits from business & profession and the assessee has also surrendered this income as profits over and above its regular business income. Hence with the arguments taken before us by the Ld. DR, we hereby hold that the surrendered income under the heads pertaining to the profits of the business and profession are allowed to be set off against the business loss / depreciation loss and since the no satisfactory explanation has been given by the assessee for the cash portion, proving its sources the same is not to be allowed to be set off against business / deprecation losses. - Decided in favour of assessee.
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