Income added back as income from undisclosed sources.

This query is : Resolved

Shruti Mishra (Querist)
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12 August 2012 sir could u please certain case laws strengthening the below case :

mr. A is a small time broker...he had taken various loans from his associates, personal loans from banks..& cash deposits (obviuosly out of his withdrawals)...the entire credits into his bank account (including a portion of it declared as business income) have been added to the income of Mr. A.

the C.A too has failed in drawing a proper balance sheet & has not shown even a single loan under liabilities...reason being the C.A never wrote any books of accounts for Mr. A, though he had many bank transactions...

All the loans taken are in cheques..cash deposits are out of withdrawals...but still A.O has added back saying it is income from undisclosed sources just because it is not shown in the balance sheet...

mR. A has even filed confirmations from lenders..

can u provide some case laws...for the captioned case...

thank you in advance..

Subramanian natarajan

Subramanian natarajan (Expert)
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13 August 2012 Here is a fit case to be handled by a brilliant Chartered Accountant with years of experience. It is high time professionals handle this case which would cost definitely some fees. Non maintenance or non observance of laws is not an excuse before law.

Shruti Mishra

Shruti Mishra (Querist)
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13 August 2012 sir, i need certain case laws..a defective balance sheet cannot overrule the facts.

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