Additions on account of lower withdrawals
This query is : Resolved
19 June 2013
The assessing officer has made an addition to the returned income of assessee on account of lower withdrawals for household purpose.he has made this addition on the basis of societal status of the assesee and number of dependent family members. Whether addition sustainable in law and whether this can be termed as concealment?
19 June 2013
Considering the social status and normal living expenses should be withdrawn from your capital. If amount withdrawn is not as per societal status and no. of dependent persons then it might raise the concern over that the assessee might have not show the entire income and earned some black money otherwise it is not possible to survive in that lower amount of withdrawal. Therefore it is not advisable to go for appeal and assessee should show reasonable amount of withdrawal from his/her capital considering his status and no. of dependent person etc.
Message likes :
1 times
19 June 2013
Appeal hearing already due:DPlease provide ur opinion on this submission:
7.1 The assessing officer has made an addition of Rs./- for low withdrawals from capital of household expenses. During the year under appeal the withdrawals amounted to Rs./- for household expenses.
7.2 This clearly means that the assessing officer intends to tax the income which is not withdrawn by the assessee and which is included in the capital of the assessee.
7.3 It may kindly be noted that such withdrawals including the said addition has already been brought to tax, before including it in the capital of the assessee, in the return of income filed by the assessee under the head ‘Income from business and profession’. The same income cannot be subjected to double taxation under the same provision of law.
7.4 Therefore, the said addition is not sustainable in law.
Since this addition is on estimation basis therefore, it cannot be termed as concealment.
7.1 The assessing officer has made an addition of Rs./- for low withdrawals from capital of household expenses. During the year under appeal the withdrawals amounted to Rs./- for household expenses.
7.2 This clearly means that the assessing officer intends to tax the income which is not withdrawn by the assessee and which is included in the capital of the assessee.
7.3 It may kindly be noted that such withdrawals including the said addition has already been brought to tax, before including it in the capital of the assessee, in the return of income filed by the assessee under the head ‘Income from business and profession’. The same income cannot be subjected to double taxation under the same provision of law.
7.4 Therefore, the said addition is not sustainable in law.
Since this addition is on estimation basis therefore, it cannot be termed as concealment.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
