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2021 (11) TMI 350 - AT - Income TaxIncome declared in the survey Proceedings - Unaccounted income over and above the regular income registered in the books of account - survey proceedings - assessee has not offered the unaccounted income, admitted during the course of survey action while filing return of income - assessee claimed expenses on the income offered during the survey and as shown loss income comparative to admitted income - HELD THAT:- CIT(A) noted that assessee claimed that there no expenses is claimed against the undisclosed income. And that expenses incurred and claimed in the audited statement were actually incurred against the turnover and would have been incurred even without income admitted in survey. CIT(A) recorded that it was the contention of the assessee that expenses can only be disallowed after giving categorical finding on the basis of evidence that expenses are not allowable. CIT(A) recorded that Assessing Officer has not given any finding on allowability or otherwise of expenses and that there is no finding of Assessing Officer that expenses are bogus and non-genuine. CIT(A) examined the comparative chart of expenses for three earlier years as well as and post survey period and on perusal of such details held that it is not a case that inflation of expenses or excessive booking of expenses in post survey period or no case of booking of extra ordinary expenses comparative to earlier years. CIT(A) held that ad-hock proportionate disallowance is not permissible and directed the assessing officer to delete the disallowance made by assessing officer. There is no dispute that assessee was engaged for development of project of Victoria Palms, Dumas Road, Surat. The assessee was not having any other source of income. There is no dispute that the assessee is not entitled for set off of losses of earlier year, which have been allowed to the assessee. As in case Shilpa Dyeing & Printing Mills (P) Ltd [2015 (7) TMI 691 - GUJARAT HIGH COURT] also held that income declared in the survey falls under one of the head of income and current year losses be set off against such undisclosed income - Grounds of appeal raised by the revenue are dismissed.
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