Unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction

Last updated: 23 September 2021
Quick Summary
This ruling clarifies that any unexplained expenditure which is considered income of the assessee cannot be claimed as a deduction. The case involved an independent director who failed to file his income tax return. During a survey of a group company, significant bank deposits were identified. The tribunal's decision reinforces the principle that undisclosed income cannot be offset by claiming it as a deductible expense.

Court :
ITAT Hyderabad

Brief :
This appeal filed by the Revenue is directed against CIT(A) - 3, Hyderabad’s order dated 09/12/2016 for AY 2008-09 involving proceedings u/s 143(3) r.w.s. 144 of the Income- Tax Act, 1961

Citation :
ITA No. 313/H/2017

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