INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Assessee did not offer additional income surrendered during the course of survey as business income -

AO made addition pertaining to surrender made during the course of survey on the ground that assessee did not offer the additional income surrendered during the course of survey and thus he added the same to the business income reported by assessee. Against this assessee contended that it did not maintain books of account at the time of survey and hence, she surrendered the additional income. Held: Assessee had surrendered the income during the course of survey and he had tried to rebut the same by furnishing regular books of accounts. AO should have examined the books of accounts and should have given proper reasoning as to why the surrendered amount was still liable to be taxed. Thus, this issue was restored to the file of AO for examining the issue afresh duly examining the books of account.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2011-12

SUBSCRIBE FOR FULL CONTENT