Additions on account of lower withdrawals
This query is : Resolved
19 June 2013
The assessing officer has made an addition to the returned income of assessee on account of lower withdrawals for household purpose.he has made this addition on the basis of societal status of the assesee and number of dependent family members. Whether addition sustainable in law and whether this can be termed as concealment?
19 June 2013
Considering the social status and normal living expenses should be withdrawn from your capital. If amount withdrawn is not as per societal status and no. of dependent persons then it might raise the concern over that the assessee might have not show the entire income and earned some black money otherwise it is not possible to survive in that lower amount of withdrawal. Therefore it is not advisable to go for appeal and assessee should show reasonable amount of withdrawal from his/her capital considering his status and no. of dependent person etc.
Message likes :
1 times
19 June 2013
Appeal hearing already due:DPlease provide ur opinion on this submission:
7.1 The assessing officer has made an addition of Rs./- for low withdrawals from capital of household expenses. During the year under appeal the withdrawals amounted to Rs./- for household expenses.
7.2 This clearly means that the assessing officer intends to tax the income which is not withdrawn by the assessee and which is included in the capital of the assessee.
7.3 It may kindly be noted that such withdrawals including the said addition has already been brought to tax, before including it in the capital of the assessee, in the return of income filed by the assessee under the head ‘Income from business and profession’. The same income cannot be subjected to double taxation under the same provision of law.
7.4 Therefore, the said addition is not sustainable in law.
Since this addition is on estimation basis therefore, it cannot be termed as concealment.
7.1 The assessing officer has made an addition of Rs./- for low withdrawals from capital of household expenses. During the year under appeal the withdrawals amounted to Rs./- for household expenses.
7.2 This clearly means that the assessing officer intends to tax the income which is not withdrawn by the assessee and which is included in the capital of the assessee.
7.3 It may kindly be noted that such withdrawals including the said addition has already been brought to tax, before including it in the capital of the assessee, in the return of income filed by the assessee under the head ‘Income from business and profession’. The same income cannot be subjected to double taxation under the same provision of law.
7.4 Therefore, the said addition is not sustainable in law.
Since this addition is on estimation basis therefore, it cannot be termed as concealment.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- GST ON DAMAGED GOODS
- Suggestions required for income tax filing-software (FY 2025-26)
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Loan by Partnership Firm
- Taxation on LTCG for property sold after 24JUL2024
- TAN for Partnership
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
