TMI Blog2013 (1) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... as it income from “other sources” because the provisions of sections 69,69A, 69B and 69C treat unexplained investments, unexplained money, bullion etc. and unexplained expenditure as deemed income where the nature and sources of investment, acquisition or expenditure, as the case may be, have not been explained or satisfactorily explained. Therefore, in these cases, the source not being known, such deemed income will not fall even under the head “income from other sources”. Therefore, the corresponding deductions which are applicable to the incomes under any of these various heads, will not be attracted in the case of deemed incomes which are covered under the provisions of sections 69,69A, 69B and 69C of the Act in view of the scheme o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 133A of the Act at the business premises of the assessee on 1.9.2005. During the course of search, a cash amount of Rs.5,00,000/- was found and the books of accounts for the year under consideration were not found to be complete uptodate. The assessee surrendered additional income of Rs.10,00,000/- relating to the assessment year 2005-06 and Rs.5,00,000/- for the assessment year 2006-07. The Assessing Officer vide order dated 26.12.2008 made additions on account of certain disallowances and the total loss declared by the assessee at Rs.5,37,300/- was reduced to Rs.2,22,765/-. The said loss was assessed as 'income from business' and the surrendered income was assessed as an income under Section 69A of the Act. Feeling aggrieved, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though a plea has been raised by the assessee that the income was surrendered as income from job work but no evidence to prove the stand of the assessee has been brought on record. The assessee had also surrendered additional income of Rs.10 lacs in assessment year 2005-06 on account of sundry credits, repairs to building and advances to staff, which being relatable to business carried on by assessee was included as income from business. However, in respect of cash found during survey, which was not reflected in the books of account, no source was declared by the assessee and in the absence of nature of source of cash being proved; the same is not assessable as income from business. In the circumstances, we uphold the order of the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income under section 14 of the Act, it would not be possible to classify such deemed income under any of these heads including income from other sources which have to be sources known or explained. When the income cannot be so classified under any one of the heads of income under section 14, it follows that the question of giving any deductions under the provisions which correspond to such heads of income will not arise. If it is possible to peg the income under any one of those heads by virtue of a satisfactory explanation being given, then these provisions of sections 69,69A, 69B and 69C will not apply, in which event, the provisions regarding deductions etc. applicable to the relevant head of income under which such income falls w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
