Unexplained expenses

Both are taxable..However income once taxed can not be taxed again when expense incurred out of the same can not be explained.

nope the unexplained exps. need to be added to income and same is the treatment of unexplained income subject to penalty

Set off is not allowed against each others.

agree with vaibhavj

Unexplained income will be taken as income in your books on which you have to pay tax and 

you will not get any credit of unexplained expenses.

unexplained expenses means income which application is concealed someway, hence it is a unexplained income

you should pay tax and penalty on both.

Originally posted by : SIDDHARTH
	you should pay tax and penalty on both.

Agreed with Siddhrath

In my opinion,if Unexplained Income comes in the purview of Concealed Income ,then against that income expenditure incurred only for that income can be claimed by the assessee.Suppose Assessee has concealed income of Jaipur Shop,if A.O. traced out Jaipur shop's income then expenditure for only jaipur shop can be claimed by assessee,but he is not eligible to claim any unexplained exp. of Delhi shop against income of Jaipur shop.

In any other case,same view of mine also that there is no deduction of Unexplained exp. against unexplained income.

Both are taxable, hence no set off is allowed against each other and you have to pay tax and penalty on both.