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2023 (6) TMI 1130 - AT - Income TaxClubbing of business income of trading of bidis of husband and wife - business income of the wife of the assessee by clubbing it with the assessee’s income - HELD THAT:- Accounts of the assessee have been duly subjected to tax audit in terms of section 44AB of the Act. When the assessee’s wife is independently assessed to income tax, having separate sales tax registration number and conducting the trading of bidis business at totally different addresses with that of the assessee and more especially when she had offered the business income from trading of bidis in her individual capacity in her income tax returns, it would be unfair to club her income with that of the business income of the assessee. We find that the assessee is already in high tax bracket and there is no need for him to split the profits between him and his wife. Hence, there is absolutely mala fide [sic] on the part of assessee. No contrary evidence to this fact has been brought on record by the Revenue, except relying on statement recorded during survey proceedings. Thus action of the lower authorities in clubbing the business income of assessee’s wife with that of the assessee is dismissed. Decided in favour of assessee.
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