Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 968 - HC - Income TaxRevision u/s 263 - expenditure out of undisclosed source allowed to be set off against the business expenditure by AO - ITAT setting aside the order u/s 263 on the ground that the said order of CIT(A) is a change of opinion - Held that:- Assessing Officer while making the addition as disclosed by the assessee essentially taxed the profit element where as the Revenue desired that it should be the entire amount which should be taxed. By now it is well settled that even in case of unaccounted receipts of a businessman, it is only the profit element embedded in the business which can be taxed and not the entire amount. In other words, if the assessee can point out that even on unaccounted receipts, expenditure was also incurred for the purpose of business, it would be only the reasonable profit on such receipts which should be taxed. In view of this, we do not see any error in the view of the Tribunal particularly considering the fact that the commissioner was exercising limited power of revision under section 263 of the Act. - Decided in favour of assessee.
|