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2023 (5) TMI 880 - AT - Income Tax
Rejection of books of accounts - estimation of income - books of account as produced by the assessee before the AO has been rejected and the income of the assessee estimated - HELD THAT:- All grounds on the basis of which the AO has rejected the books of account and adopted the estimation of income is found to be unsubstantiated and unsustainable, the rejection of books of account by the AO itself stands reversed and the estimation of income as done by the AO stands deleted.
TDS certified issued by Corporation Bank on an interest income assessed in the hands of the assesse -AR submits that the said amount has been disclosed by the constituent in his return of income, the income of the year is to be assessed in the hands in which the income is received. The income is received in the hands of JV, therefore, interest is to be assessed in the hands of JV.
After taxing the same in the hands of the JVs, the profit, if any, is to be apportioned in the line with JV agreement. In these circumstances, addition as made by the AO being the interest received from Corporation Bank has been rightly made and does not call for any interference.
AO shall examine whether the said amount has been disclosed by the constituent members of JV in their returns. If it is found that the amount has been disclosed by the constituent JVs in their returns, the same is to be deleted from the hands of the constituent.
Appeals of the assessee stand partly allowed.