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2022 (5) TMI 1086 - AT - Income TaxDeemed income u/s 69A - Disallowance of Indirect Expenses and Interest on Partner’s Capital - HELD THAT:- As it is vivid that expenses are duly supported by bills / vouchers/ evidences Indirect Income - Undisclosed income - AO observed that assessee has not offered this income as “Business Income” or “Income from other sources” in its Profit and Loss account - Income declared during Survey as Deemed Income not includible under any of the heads of Income prescribed u/s 14 of the Income Tax Act, 1961 - HELD THAT:- Unaccounted amount of Rs.16,65,000/- admitted during survey, is business income, as explained by the assessee twice in his statement. Now, burden is on the assessing officer to disprove it. However, we note that assessing officer has not refuted or discredited these evidences. The assessing officer does not mention why he is not accepting these evidences. Thus, it is abundantly clear that assessing officer has not made any adverse finding in any of these documents even, though all the details were furnished by the assessee before him. The assessing officer ought to have examined all these details and refuted / rejected them, with a cogent adverse findings and discernable line of reasoning, in order to arrive at a conclusion and to make the addition. On the contrary, the assessing officer has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Therefore, based on this factual position, we direct the assessing officer to treat the amount under the head “ Income from business” and allow Indirect expenses and interest on partner’s capital account. Assessee appeal allowed.
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