BHARAT ASSOCIATES,BUNDI vs. ACIT (OSD), BUNDI

ITA 1293/JPR/2024Status: DisposedITAT Jaipur17 April 2025AY 2016-2017Bench: SHRI GAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the expenses claimed against the surrendered income during the survey were not allowable as the entire surrender was to be treated as income. However, the disallowance of remuneration under Section 40(b) was found to be erroneous and was directed to be recomputed based on book profits.

What were the facts?

During a survey, the assessee declared Rs. 97,21,000/- but claimed expenses of Rs. 62,28,497/-. The Assessing Officer (AO) added back these expenses and disallowed remuneration under Section 40(b). The CIT(A) confirmed these additions.

What were the issues?

Whether expenses can be claimed against income surrendered during a survey, and whether remuneration disallowance under Section 40(b) was correctly made.

Which sections of the Income-tax Act were involved?

Section 133A,Section 40(b),Section 115BBE,Section 28,Section 68,Section 69A,Section 69B,Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCH “A”, JAIPUR

Before: SHRI GAGAN GOYAL & SHRI NARINDER KUMAR

For Appellant: Mr. Mahendra Gargieya, Adv., &, Mr. Devang Gargieya, Adv., Ld. ARs
Hearing: 17/04/2025Pronounced: 17/04/2025

PER GAGAN GOYAL, A.M:

This appeal by the assessee is directed against the order of CIT(A), Jaipur - 04 dated 23.08.2024 passed u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’). The assessee has raised the following grounds of appeal:-

1.

The impugned additions and disallowances made in the order u/s. 143(3) dated 29.11.2016 are bad in law and on facts of the case, for want of juri iction and various other reasons and hence the same kindly be deleted.

2.

Rs. 62,28,947/- as undisclosed income: The Ld. CIT(A) erred in law as well as on the facts of the case in erroneously confirming the addition made by the AO of Rs. 62,28,947/-considering the entire gross receipt surrendered during survey as inc

The order continues below.

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