Urgent

Others 643 views 4 replies

Nirav Jariwala

Senior Auditor (As Article)

36 Points Joined October 2009

Hi,

survey has been conducted on Partnership firm by department 3 years ago and consequently disclosed income of 80,00,000/-. the case is still pending for scrutiny. The A.O. wants to consider the disclosed income as Income from other sources rather than to consider it as Business Income. As far as, i concern, the same should be treated as business income as the disclosed income consisted of unaccounted stock, excess cash received and unaccounted furniture only. So, please, help me out, in which head it is proper to disclose the above disclosed income. its very urgent

Replies (4)

Anand Luhar

Entrepreneur(CA/CWA Gold Medal)

254 Points Joined February 2009

hello Mr Nirav ,

THE A.O IS RIGHT ANY INCOME UNDISCOLOSED WAS FOUND IN SEARCH WILL ALWAYS COME IN HEAD OF other sources AND REASONS BEHIND IT THAT IN OTHER SOURCES INCOME NO EXPENSE ARE ALLOWED TO BE CLAIMED SO NO BUSSINESS INCOME

Vijay Patil

Practising Chartered Accountant

46 Points Joined November 2010

there is no question of head of income in case of search & seizure provision given under section 158BA. a flat rate of tax i.e. 60% (add applicable surcharge etc) u/s 113 is applicable in case of such undisclosed income of assessee.