Case Law Details
Karthik Estate Vs Principal Commissioner of Income [Central] (ITAT Bangalore)
ITAT Bangalore Held that declared additional income offered to tax as business income is sustainable when the only source of income is business income. Hence, the provisions of section 115BBE cannot be invoked to tax the income as ‘deemed income’.
Facts-
The case of the assessee was selected for scrutiny and notice u/s. 143(2) was served on the assessee. The AO noticed that the assessee in the ROI filed has declared additional income of Rs.3 crores under the head ‘income from business’ and had paid taxes on the same. AO upon verification of various documents submitted and explanation offered by the assessee, accepted the returned income and passed the order u/s. 143(3) of the Act.
PCIT noticed the fact that the assessee has admitted Rs.3 crores as business income in the hands of the assessee during the search proceedings and no explanation as regards the source and nature of receipts was submitted. He was of the view that income of the assessee should have been assessed as unexplained cash credit, rather than business income and added back as income u/s. 68 taxed at special rate u/s. 115BBE of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
