Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 2092 - ITAT RAJKOTUnexplained Cash deposited in RCC Bank account - income from undisclosed sources - set off of loss from share transaction of income - CIT(A) observed that there was no nexus between profit earned through the job work and the cash deposit in RCC bank - CIT(A) has computed the undisclosed income from the RCC bank and total income of the assessee was computed - He has also allowed to set off the loss from share transactions. HELD THAT:- As per provisions of section 70 of the act loss from one source against income from another source under the same can be set off. As per provisions of section 80 of the act such loss is allowed to set off even if the return is not filed in time. Therefore, we consider that ld. CIT(A) has correctly allowed set off of loss from share transaction of income in the case of the assessee. Assessee failed to controvert with any relevant evidences that the findings of CIT(A) is not correct. After considering the above facts and circumstances, we do not find any reason to interfere in the decision of the ld. CIT(A), therefore, the appeal of the assessee is dismissed. Levy of penalty u/s 271B - assessee had not got his account audited u/s. 44AB of the act as the turn-over of the assessee was exceeding Rs. 40 lacs during the previous year - assessee has filed revised return of income disclosing net profit after taking into account the undisclosed cash deposit found in the ICICI bank a/c. - HELD THAT:- We observe that separate penalty has been provided as per the provisions of section 271A for failure to keep, maintain or retain books of account, documents, etc. as required by section 44AA of the act. In view of the above, the assessee has violated the provision of section 44AA by not maintaining books of accounts and the assessing officer has not initiated any penalty as prescribed u/s. 271A of the act. We observe that section 271B is not attracted in a case where no account has been maintained and instead an recourse u/s. 271A can be taken. Therefore, we consider that in the case of the assessee the imposition of penalty u/s. 271B is not justified. Accordingly, the appeal of the assessee is allowed
|