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TMI Blog2017 (6) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... ing receipts has been shown in the credit side in the income and expenditure account. The income as per the income and expenditure account is a sum of ₹ 2,63,358/-. In the computation of total income for A.Y.2010-11, the AO has adopted this income as the starting point of computation of income under the head profits and gains of business. Thus the income of ₹ 2,63,357/- includes all expenses debited in the income and expenditure account. The direction of CIT(A) has to be understood as making a reference to no further expenses are to be allowed over and above what is debited in the income and expenditure account. This direction in our view is proper and appropriate because the assessee has not been able to substantiate any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which is engaged in inland transport and courier services business etc. A search and seizure operation u/s 132(1) of the Income tax Act, 1961 (Act) was conducted in the business and residential premises of the assessee on 05.11.2009. In the course of search jewellery valued at ₹ 9,11,895/- was found. The jewellery found weighed 579 gms and it was claimed by the assessee that it belongs to the assessee s wife Smt. Sita Devi Jhanwar and an affidavit dated 15.09.2011 was filed by her in this regard. It was explained in the affidavit that she belongs to the marwari community and as per the custom in the community gifts were received on social functions from relatives and that was the source of acquisition of jewellery by her. 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason why the addition should be made in the hands of the assessee. The addition is accordingly directed to be deleted. 8. Ground No.2 raised by the assessee reads as follows :- 2 . That in the facts and circumstances of the case, the Ld . C . I . T .( A ) erred in not allowing expenses in respect of courier business as reflected in the statement of accounts filed before the Ld Assessing Officer and determining the entire Gross receipts of Rs . 2,38,994 /- as income . 9. As we have already seen the assessee is also in the business of courier services. In the course of search loose sheets were found which evidenced that for a period of three months during the previous year, the assessee had made booking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent evidence was found of suppressed receipts from rendering courier services no expenses should be taken for consideration for determining such income of the assessee. The following were the conclusions of the CIT(A) : In view of the above, the AO is directed to restrict the assessment of undisclosed income to the receipts of ₹ 2,38,995/- as found recorded in the seized material. However, no expenses can be allowed as the same are not found recorded in the seized material. Ground no.3 and 4 are partly allowed. Ground no.5 and 6 are general in nature. 11. In ground no.,2 the assessee is aggrieved by the action of CIT(A) in not allowing expense against the suppressed receipts from rendering courier services. 12. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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