Section 69
This query is : Resolved
18 December 2010
Dear All
My friend has invested some money in shares from joint account which he had with his wife. Wife is also tax payer. Whatever income received in joint account part of that is invested in shares. However the assessee forgot to disclose the investments in shares in his books though the source of investment is clear. During assessment proceedings the ITO wants to add the investments as undisclosed investment and tax accordingly. Pl justify the ITO. Could any one suggest and case law in the matter.
His wife files return under section 44AE and not maintain books of account. He himself is in the business of insurance commission and maitains books of accounts. However he has neither recorded the invesments nor loan from wife. Wife has admitted vide her letter to ITO that she has lent the amount to his spouse for shares.
My friend has invested some money in shares from joint account which he had with his wife. Wife is also tax payer. Whatever income received in joint account part of that is invested in shares. However the assessee forgot to disclose the investments in shares in his books though the source of investment is clear. During assessment proceedings the ITO wants to add the investments as undisclosed investment and tax accordingly. Pl justify the ITO. Could any one suggest and case law in the matter.
His wife files return under section 44AE and not maintain books of account. He himself is in the business of insurance commission and maitains books of accounts. However he has neither recorded the invesments nor loan from wife. Wife has admitted vide her letter to ITO that she has lent the amount to his spouse for shares.
18 December 2010
Dear Arora
Since as per ur query it is assumed that the investment is made out of taxable profit the ITO can only add income from such investments which is not disclosed. but if u are maintaining books of accounts and investments are not shown in the books than how the bank accounts got tallied.In such case ITO is correct in assuming such income has not been shown and invested.
if book of accounts are not maintained, than assessing officer is not correct in adding complete investments if it is from tax paid income. ITO can add only dividend s received from such shares.
Since as per ur query it is assumed that the investment is made out of taxable profit the ITO can only add income from such investments which is not disclosed. but if u are maintaining books of accounts and investments are not shown in the books than how the bank accounts got tallied.In such case ITO is correct in assuming such income has not been shown and invested.
if book of accounts are not maintained, than assessing officer is not correct in adding complete investments if it is from tax paid income. ITO can add only dividend s received from such shares.
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
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Average Cost Of High Quality Diamonds
- ITR 4 OR ITR 3 WHICH FORM CHOOSE
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
