Concealment of Income in case of loss
This query is : Resolved
28 July 2010
I have one query.
A person is having business income. during the income his sales return Rs.1.25 lacs as compared to his sales of Rs.1.00 Lacs & having loss of Rs.7.50 lacs.
The assessee has borrowed huge amount from various institutions & paid hafty interest. It is not possible to identify whether the money is used for the purpose of business or for personal.
Can assessing officer disallow such interest expenditure & can assessing officer treat such disallowance as concealment of income.
If possible pls. quote judgement/case law on the same.
Regards & Thanks in Advance
Maqbulhusen Malaiwala
A person is having business income. during the income his sales return Rs.1.25 lacs as compared to his sales of Rs.1.00 Lacs & having loss of Rs.7.50 lacs.
The assessee has borrowed huge amount from various institutions & paid hafty interest. It is not possible to identify whether the money is used for the purpose of business or for personal.
Can assessing officer disallow such interest expenditure & can assessing officer treat such disallowance as concealment of income.
If possible pls. quote judgement/case law on the same.
Regards & Thanks in Advance
Maqbulhusen Malaiwala
28 July 2010
Disallowance of expenses will not per se amount to furnishing inaccurate particulars of income so as to attract penalty under section 271(1)(c).
Citation : -CIT Vs. Ajaib Singh & Co. (2002) 253 ITR 630 (P&H)
Citation : -CIT Vs. Ajaib Singh & Co. (2002) 253 ITR 630 (P&H)
Message likes :
1 times
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
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR returnFY25-26
- ITR validation error - Balance sheet is not filled
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Bank Accounts in Balance Sheet for ITR 3
- ITR 1: Details for showing Exempt Income
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- 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
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
