Additions made u/s 68
This query is : Open
24 January 2012
Hello.
An assesee runs a business as a semi wholeseller in color paints. the accountant has not written maintained the savings account of the assesee, wherein he is a joint a/c holder with one of his relatives. Neither the savings account has been disclosed in the assesee's books.
the other joint holder runs the same business on a very minor scale through the same savings account. He has filed his ITR.
the A.O has added back all the cash deposits made during the yr in the savings account and taxed in the hands of the assesee. Does the assesee has an eligible stand. Is the A.O's order correct ?
I need to discuss.
An assesee runs a business as a semi wholeseller in color paints. the accountant has not written maintained the savings account of the assesee, wherein he is a joint a/c holder with one of his relatives. Neither the savings account has been disclosed in the assesee's books.
the other joint holder runs the same business on a very minor scale through the same savings account. He has filed his ITR.
the A.O has added back all the cash deposits made during the yr in the savings account and taxed in the hands of the assesee. Does the assesee has an eligible stand. Is the A.O's order correct ?
I need to discuss.
25 January 2012
Assessee has an eligible stand in view of the following observations.
1) Bank pass book is not a 'books of accounts' of the assessee. Pl refer the decision of CIT V Bhaichand H Gandhi (1983) 141 ITR 67(Bom).
2) Assessee has not credited the other joint holders amounts in his/her books of accounts.
3) Section 68 can't be invoked since there is no unexplained credits in assessee's 'books of accounts'.
Hence AO's assessment order is not correct.
1) Bank pass book is not a 'books of accounts' of the assessee. Pl refer the decision of CIT V Bhaichand H Gandhi (1983) 141 ITR 67(Bom).
2) Assessee has not credited the other joint holders amounts in his/her books of accounts.
3) Section 68 can't be invoked since there is no unexplained credits in assessee's 'books of accounts'.
Hence AO's assessment order is not correct.
25 January 2012
The cash credits into the bank are actually labour chrgs recvd (income) from business carried on by the other joint holder. he operates this account.
So the assesee in question should be the other holder and not my client, Isnt it ????
So the assesee in question should be the other holder and not my client, Isnt it ????
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