Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 285 - AT - Income TaxLiability to pay tax - Taxable in the hands of partner or Partnership Firm - Interest Income and income from contract business as technical entrepreneur license holder - Arrangement of pooling turnover and business between the firm and its partner Karta - double taxation - Held that:- The assessee is a partner in the firm M/s. Jagannath Choudhury is false and misleading as has been found by the Assessing Officer in the remand report. The assessee is not under contractual obligation to transfer any business to the firm M/s. Jagannath Choudhury. Hence, the contract receipts in the name of the assessee have to be considered in the hands of the assessee. It is not the case that the firm M/s. Jagannath Choudhury has executed the contract taken in the name of the assessee. The assessee has received interest from banks in respect of various deposits in his name and he is not under contractual obligation to transfer such income to the firm M/s. Jagannath Choudhury. It is also found that TDS has been made in respect of interest paid in the name of the assessee as per 26AS statement. The agreement between the firm and the partner Arun Kumar Choudhury (HuF) cannot be binding on the assessee. The record shows that the assessee has received interest and executed contracts in his name and TDS made on the interest is credited in the name of the assessee. In view of the same, there is no reason that interest of ₹ 12,93,062/- should not be assessed in the hands of the assessee. Since the contract receipts of ₹ 12,93,062/- has been received by the assessee for the contract works executed by him and no accounts have been submitted for the same, the Assessing Officer is justified in estimating income of ₹ 38,365/- @ 8% which is reasonable. - Decided against assessee
|