AN ASSESSEE IS RUNNING A TASMAC BAR( TAMILNADU LIQUOR SHOP) BY USING ANOTHER PERSON'S LICENCE . HOW CAN WE TREAT THIS BAR INCOME AND UNDER WHICH HEAD OF INCOME
20 June 2013
If the licence is not in his name, the income from shop should be the income of the person whose name in the licence.
If he is paying some consideration(of course documentary evidence)for using the licence to the licence holder, then the income for shop is taken as income for business of the person operating the shop.
More over kindly go through the relevant provisions of state excise law, as in most of the states transfer of liquor licence is illegal.
Even if it is illegal to operate liquor shop allotted to other person, income will be considered for income tax as as per provision of income tax income includes illegal income also.
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