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TMI Blog2020 (10) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... , we hold the entire disclosed amount are attributable to the business activity and consequently is eligible for all allowances u/s. 40(b) of the Act. - Appeal of assessee is allowed. - ITA No.2106/PUN/2017 - - - Dated:- 26-8-2020 - Shri P.M. Jagtap, Vice President And Shri S.S. Viswanethra Ravi, Judicial Member For the Assessee : Shri Pramod Shingte For the Revenue : Shri Aseem Sharma ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 09-05-2017 passed by the Commissioner of Income Tax (Appeals)-4, Pune [ CIT(A)‟] for assessment year 2013-14. 2. The only issue is to be decided as to whether the CIT(A) justified in confirming the order of AO in treating the add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of flats/unit sold and these receipts are part and parcel of the trading receipts. The said submissions of assessee found not acceptable to the Assessing Officer and the Assessing Officer disallowed claimed u/s. 40(b) of the Act and treated an amount of ₹ 75,50,400/- as income from other sources vide order dated 16-03-2016 u/s. 143(3) of the Act. We find, in the First Appellate proceedings before the CIT(A) the assessee reiterated the same contentions as made in the assessment proceedings. The CIT(A) held that unaccounted income as declared during the course of survey cannot be treated as trading receipts for the purpose of claiming deduction u/s. 40(b) of the Act and upheld the order of Assessing Officer in treating the same as i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the character of other source of income and benefit of business expenditure cannot be allowed from such income. The ld. DR supported the order of CIT(A). 7. We find that there is no dispute regarding the business of assessee and earning ₹ 200/- extra over and above regular income for selling 37,752 sq. ft. in Aayodhya Nagari project. From the day one i.e. from date of survey as discussed above, the assessee was contended the amount disclosed during the course of survey as additional income is part and parcel of its regular trading receipts and cannot be deemed as unaccounted money u/s. 69 of the Act. We note that the assessee incurred expenditure of ₹ 80,00,000/- on account of partners salary which is reflected in profit and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit. On reading the same, it is thus clear that the net profit, as shown in the profit and loss account for the relevant previous year and computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm, if such amount has been deducted while computing the net profit is amounted to book profit for the purpose of sec. 40(b) of the Act. Chapter IV-D covers the income chargeable under the head profit and gains of business or profession.‟ We h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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