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Unexplained expenses

SURINDER CHAWLA (AAAAA) (25 Points)

08 December 2012

WHEATHER UNEXPLIANED EXPENSES ARE ALLOWED AGAINST UNEXPLAINED INCOME

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11 Replies

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 08 December 2012

Both are taxable..However income once taxed can not be taxed again when expense incurred out of the same can not be explained.

Bhushan Jaju (Student) (970 Points)
Replied 08 December 2012

nope the unexplained exps. need to be added to income and same is the treatment of unexplained income subject to penalty

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 08 December 2012

Set off is not allowed against each others.

Bhushan Jaju (Student) (970 Points)
Replied 08 December 2012

agree with vaibhavj

Durga Prasad (Trainee) (392 Points)
Replied 08 December 2012

Unexplained income will be taken as income in your books on which you have to pay tax and

you will not get any credit of unexplained expenses.

1 Like

SIDDHARTH (CA) (30 Points)
Replied 08 December 2012

unexplained expenses means income which application is concealed someway, hence it is a unexplained income

SIDDHARTH (CA) (30 Points)
Replied 08 December 2012

you should pay tax and penalty on both.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 08 December 2012

agreed

Originally posted by : Durga Prasad

Unexplained income will be taken as income in your books on which you have to pay tax and

you will not get any credit of unexplained expenses.

CA Roshan Jha (CA (Practice)) (858 Points)
Replied 08 December 2012

Originally posted by : SIDDHARTH
	you should pay tax and penalty on both.

Agreed with Siddhrath

Pulkesh Mehta (Chartered Accountant) (243 Points)
Replied 09 December 2012

In my opinion,if Unexplained Income comes in the purview of Concealed Income ,then against that income expenditure incurred only for that income can be claimed by the assessee.Suppose Assessee has concealed income of Jaipur Shop,if A.O. traced out Jaipur shop's income then expenditure for only jaipur shop can be claimed by assessee,but he is not eligible to claim any unexplained exp. of Delhi shop against income of Jaipur shop.

In any other case,same view of mine also that there is no deduction of Unexplained exp. against unexplained income.