My Query ??

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2010 Mr. X & Mrs. X have Joint Bank Account.
Rs. 500000/- is Lying in the Account & That of Mrs. X.

Cheque Issued From Joint Account For Rs. 5 Lacs in Favour of Proprietorship Firm of Mr. X as a Loan.

Mr. X has Signed The Cheque But Amt. Lying in the Account Belongs to Mrs. X.

Now AO Says That This Amt. Belongs to Mr. X & Only Dummy Name Has Been Mentioned .

He Wants To Treat The Amt. as Undisclosed Income.

Now My Question is Whether the Contention of AO is Correct or If any Case Law Belong to Such Matter.

CA. BHAVIK DILIPBHAI MEHTA

CA. BHAVIK DILIPBHAI MEHTA (Expert)
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04 December 2010 1) If Mrs X is filing her own return of income & has shown interest income on Rs. 5 lacs then it is not an undisclosed income.

2) Secondly the amount brought in from the joint account to the proprietorship firm should have been shown as additional capital infused.

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2010 How It Can Be Capital Infused.

Then It will Be Definately a Undisclosed Amt

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