Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (7) TMI 968 - GUJARAT HIGH COURT

2016 (7) TMI 968 - GUJARAT HIGH COURT - [2016] 387 ITR 114 - Revision 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng the fact that the commissioner was exercising limited power of revision under section 263 of the Act. - Decided in favour of assessee. - TAX APPEAL NO. 859 of 2012 - Dated:- 19-7-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE APPELLANT : MR.VARUN K.PATEL, ADVOCATE FOR THE OPPONENT : MR SN DIVATIA, ADVOCATE ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against judgement of the Income Tax Appellate Tribunal dated 31.7.2012 raising following question fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the business of transportation was subjected to survey proceedings during which he had admitted an expenditure of ₹ 77.01 lacs out of undisclosed source. In the return filed by the assessee for the assessment year 2006-2007, the Assessing Officer though took note of such income, allowed set off against the business expenditure which order was taken in revision by the Commissioner. He was of the opinion that such expenditure would be covered under section 69C of the Act and by virtue of ju .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

npaid freight and liability and no addition was made on account of outstanding liability from unaccounted income u/s 69C of the IT Act. The CIT has passed the order u/s 263 on the basis of liability of ₹ 1,03,24,530/- has been shown as unpaid freight as on 31.3.2006 and liability paid ₹ 77,01,958/- during the FY 0506 which has been considered by the Assessing Officer. The ld. CIT has framed different opinion on similar facts considered by the Assessing Officer in assessment order. Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f 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. 4. 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 rev .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as that of running a hospital. It had no other source of income and that therefore, treating such undisclosed income from other source was not justified. In the case of Deputy CIT v. Radhe Developers India Ltd., (2010) 329 ITR 1(Guj.), this Court while distinguishing the decision in the case of Fakir Mohmed Haji Hasan (supra), observed as under: The decisions of this Court in the case of Fakir Mohmed Haji Hasan (supra) and Krishna Textiles (supra) are neither relevant nor germane to the issue co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

idered by the Apex Court and, hence, it is not necessary to repeat the same. Suffice it to state that the Act does not envisage taxing any income under any head not specified in section 14 of the Act. In the circumstances, there is no question of trying to read any conflict in the two judgments of this Court as submitted by the learned Counsel for the Revenue. In any case, we are convinced that the Tribunal was correct in holding that even if two views are possible, powers under section 263 of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version