TMI Blog2012 (5) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... wani, Sr. D.R. Respondent by : Shri M.K. Patel. ORDER PER: SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. This appeal is filed by the Revenue against the order of CIT (A)-V, Surat dated 22-08-2011 for the Assessment Year 2003-04. 2. The only effective ground taken by the Revenue reads as under:- On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of ₹ 10,00,000/- made by the A.O. on account of disallowance of remuneration to working partner. 3. The facts of the case are that the assessee filed return of income on 30.3.2004 declaring total income of ₹ 57,68,056/-. The case was taken up for scrutiny and the assessment was completed u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Once it is considered as business income then the remuneration to partners has to be computed after taking it into consideration. For this proposition he relied on the decision of CIT Anr. Vs S.K.Srigiri Bros (2008) 20 (I) ITCL 248 (Kar HC), Hotel Kumar Palace Vs DCIT (2005) 93 TTJ (Asr) 629 and other decisions. CIT vide order dated 22.8.2011 allowed the appeal of the Assessee by holding that when once the additional income offered for taxation during the survey is accepted and it has been explained business as the source of additional income then there is no bar in the Act from claiming partner s remuneration from such addition business income offered for taxation. 5. Aggrieved by the order of CIT (A) the Revenue is now in appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITCL 248 (Kar HC), Hotel Kumar Palace Vs DCIT (2005) 93 TTJ (Asr) 629, Deepa Agro Agencies Vs ITO (2005) 98 TTJ (Bang) 766 and other decisions. He further stated that on identical facts the Ahmedabad Tribunal in the case of ACIT Vs Amin Yasin Saiyed (ITA NO 2916/Ahd/2006) has allowed the assessee s appeal. 8. We have heard the rival contentions and perused the material placed before us. 9. The factual position of the present case are that the assessee is a partnership firm engaged in the business of dyeing and printing. A survey took place at the business premises of the Assessee and the assessee made disclosure u/s 133A. The disclosure of the income was made under the head of business income as the documents seized were related to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dits attains the character of business income. The words book profit defined in s. 40(b) means net profit as shown in Profit and Loss account computed in the manner laid down in Chapter IV-D. The assessee included such unexplained cash credits in its P L a/c. The book profit is to be computed in the manner laid down in Chapter IV-D. Thus, the cash credit forms part of book profit for the purpose of computation of remuneration. 12. In the case of ITO Vs Jamnadas Muljibhai (2006) 99 TTJ (Raj) 197 Assessee declared that excess stock discovered during survey was out of current year s undisclosed income and took the same to its P L a/c and claimed partner s remuneration against the same u/s 40(b). The same was held to be allowable. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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