M/S AJAY KUMAR SOOD ENGINEERS & CONTRACTORS,SHIMLA vs. DCIT, CHANDIGARH

ITA 322/CHANDI/2014Status: DisposedITAT Chandigarh13 June 2018AY 2008-0923 pages
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What did the Tribunal hold?

The Tribunal held that income surrendered, apart from cash, should be treated as business income, especially when the AO did not dispute business losses or reject the books of accounts. The AO's reliance on certain case laws was deemed misapplied.

What were the facts?

The appeals involved additions made by the Assessing Officer (AO) on account of unexplained expenditure, cash payments, and income surrendered during a search. The assessee argued that the surrendered income was part of their existing business activities and sought to set off business losses against it.

What were the issues?

Whether surrendered income, other than cash, should be treated as business income and allowed to be set off against business losses. Whether additions made under Section 40A(3) were justified when the expenditure was not claimed as a deduction.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 69A

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Cases cited in this judgment(6)Show list

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Income Tax Appellate Tribunal, DIVISION BENCH’A’, CHANDIGARH

Before: SMT. DIVA SINGH & DR. B.R.R. KUMAR

For Appellant: Shri. Sudhir Sehgal, Shri. Dinesh Sood
For Respondent: Dr. Gulshan Raj
Hearing: 24/05/2018Pronounced: 13/06/2018

PER BENCH:

All the above appeals have been filed by the different Assessees and Cross Appeal filed by the Revenue against the separate order of the Ld. CIT(A), Gurgaon.

2.

Year wise grounds of Appeal in case of Ajay Kumar Sood Engineers & Contractors are as under: Grounds of appeal in ITA No.319/Chd/2014 for A.Y. 2005-06:

1

The order continues below.

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