20 June 2007
A survey u/s 133A has been conducted at business place of an assessee. at the end of the survey assessee has surrendered Rs.20 lacs (16 in stock and 4 in cash)as income of the PREVIOUS YEAR 2005-06(i am repeating income of the P.Y.2005-06). I have filed return and claimed deduction u/s 80IB bcoz the surrendered income was earned from business sources. assessee is woman and has no other source of income.
she is filing return since last 5-6 years and getting deduction u/s 80IB.
MY MAIN QUE.IS CAN ASSESSEE CLAIM DEDUCTION U/S 80IB ON SURRENDERED INCOME DURING SURVEY. REMEMBER THAT U/S 80IB business income of ELIGIBLE BUSINESS CAN BE CLAIMED. SO CAN WE TREAT SURRENDERED INCOME AS BUSINESS INCOME. GIVE CASE LAW, IF ANY. ASSESSEE RESIDES IN M.P.STATE
24 September 2008
Assmt u/c 153A: In case of action on or after 1/6/2003, AO shall issue notice to assessee to furnish a return of income for six previous years preceding previous year in which search is initiated. The notice can be issued even if the conditions laid down in other sections are not satisfied. No minimum time for filing return. All pending assessments shall abate. All other provisions of the Act and relevant rate of tax shall be applicable.
U/s 147: As per section 147, action for the assessment or reassessment can be taken within six years from end of assessment year. So at any time, assessment for preceding seven years can be reopened. However, the preceding seventh year is omitted u/s 153A. It has been held in case of Ramballah Gupta v. Asst. CIT (288 ITR 347) (MP) that when search takes place, the action for such year can be taken u/s 147 and for other years u/s 153A.
23 October 2008
Dear Dashrath ji! You have not replied my query. My question is can an assessee claim deduction u/s 80IB on income surrendered during survey as treating it business income?Is it any case law?Plz read my original question carefully.