| |
| The Tax Publishers2021 TaxPub(DT) 1083 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Where it was not in dispute that assessee had resorted to inflation of expenses by making certain cheque payments and receiving back cash in return and the said cash had already also been utilised for the purpose of meeting business related expenses by the assessee, in this background what is to be taxed is only the left-over portion of the cash remaining with the assessee on this subject mentioned transaction, being the profit element, which had been already accepted by ITSC at 12% in assessee's group company cases
|
Income from undisclosed sources - Addition under section 68 - Income from inflation of expenses - Utilisation for the purpose of meeting business related expenses
Assessee was issued notice under section 153A pursuant to search conducted under group companies. During the seach it was noticed that parallel books of accounts were maintained by the assessee evidenced booking of expenses in the form of cheque payment and receiving back cash for the same. Thus, an adhoc disallowance at 25% of inflated expenses was made by CIT(A). Held: It was not in dispute that assessee had resorted to inflation of expenses by making certain cheque payments and receiving back cash in return. It was not in dispute that the said cash had already also been utilised for the purpose of meeting business related expenses by the assessee. In this background what is to be taxed is only the left-over portion of the cash remaining with the assessee on this subject mentioned transaction, being the profit element, which had been already accepted by ITSC at 12% in assessee's group company cases.
REFERRED :
FAVOUR : Partly in favour of assessee.
A.Y. :
INCOME TAX ACT, 1961
Section 68
 SUBSCRIBE FOR FULL CONTENT
|