9911796707
TMI Blog2013 (5) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... iness. A search u/s. 132 of the I.T. Act was carried out on 19.01.2006 in J.K. Securities Group of cases and the office premises of the assessee were covered under survey u/s 133A of the Act. The assessee filed return of income on 26.12.2006 declaring total income at Rs.13,43,953/-. The assessment was completed by the Assessing Officer and assessment was framed u/s 143(3) of I.T. Act vide order dated 31.12.2007. Subsequently on perusal of the assessment record by ld. CIT, he observed that the assessee had disclosed the income of Rs.20 lacs on account of unaccounted advances. He also noted that while computing income from business, the assessee had debited a sum of Rs.9,89,154/- as salary to partners and claimed a deduction u/s 40b(v) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of income and whether the same was assessable under the head "business" or under any other head. He was further of the view that the Assessing Officer was duty bound to examine the issue which he had failed to examine. The CIT (A) thus concluded that the Assessing Officer did not examine the facts and therefore the assessment framed by the Assessing Officer was erroneous and prejudicial to the interests of the Revenue. He accordingly set aside the issue to the file of the Assessing Officer, directing him to reassess the income of the assessee after granting sufficient opportunities to the assessee for being heard. Aggrieved by the aforesaid order of the Ld. CIT (A), the Assessee is now in appeal before us. 5. Before us, the Ld. A.R. sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Ld. CIT (A). 7. We have heard the rival submission and perused the material on record. It is an undisputed fact that during the course of assessment proceedings, on the basis of the documents seized during the course of survey, addition on account of unaccounted advances was made by the Assessing Officer. In his order the Assessing Officer has also noted that the assessee had advanced loan out of his unaccounted income which were not reflected in his regular books and which were received by cash. Before us, the Ld. A.R. has not brought any material on record to prove that the Assessing officer has examined the issue as to taxing the same under business income or under any other head. The decision relied by the Ld. A.R. is distinguish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to be the income of such assessee. It follows that the moment a satisfactory explanation is given about such nature and source by the assessee, then the source would stand disclosed and will, therefore, be known and the income would be treated under the appropriate head of income for assessment as per the provisions of the Act. When the income cannot be so classified under any one of the heads of income under Section 14, it follows that the question of giving any deductions under the provisions which correspond to such heads of income will not arise. The provisions of sections 69, 69A, 69B and 69C, treat unexplained investments, unexplained money, bullion, etc., and unexplained expenditure as deemed income where the nature and source o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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