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TMI Blog2021 (10) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... d expenses of 8 lakhs on account of professional fees. As perused the statement of partners recorded by survey party. On perusal of the statements, we find that while making disclosure of 8.00 crores, the partners gave the bifurcation of disclosed income. From carefully perusal of answer to the Q.No.5 we find that there is no such averment that the assessee would not claim any expense is made. As disallowed the expenses by treating the disclosure at admission of assessee over and above the regular income and disallowed the legal expenses - assessee has not undertaken any other activities except the development of flat construction of various housing projects. We find that on similar facts of the case of DCIT vs. Suyog Corporation 2015 (8) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2013-14 on 25.09.2013 declaring total income of ₹ 7,92,54,000/-.The case was selected for scrutiny. During assessment, the Assessing Officer noted that a search and seizure action was carried in case of Shri Lavjibhai Daliya and Shri Jyantibhai Babaria group on 17.07.2012. During the course of survey, the partner of assessee disclosed additional unaccounted income of ₹ 8,00,54,000/-. The Assessing Officer further noted that assessee has debited expenditure of ₹ 8.00 lakh from the income disclosed in survey. The Assessing Officer asked the assessee that no expenditure is allowable from the income disclosed during the survey as it an additional income over and above legal income and show cause as to why the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akh after deducting Tax at Source (TDS) and credited to their accounts. The Ld. AR of the assessee furnished the copy of 26AS Form of Chartered Accountant (CA) of S.N.K & Co. The Ld. AR of the assessee submits that the fees were also paid by assessee-firm to a professional firm in financial years 2013-14 and 2015-16 respectively. The Ld. AR submits that professional fees paid by the assessee-firm is deductible expenses. The Ld. AR submits that relevant documentary evidence about payment of professional fees was furnished before the Assessing Officer. The Ld. AR further submits that while replying to the question No.5 during recording of statements of partners Shri Laljibhi Daliya and Jyantibhai Babaria disclosed it unaccounted income for &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve gone through the order of authorities below. We find that there is a very narrow dispute in the present appeal for our consideration is whether the assessee can claim expenses of professional fees against the additional unaccounted income disclose during the survey. There is no dispute that during the survey, the statement of partners of assessee was recorded. During the statement the partners of the assessee declared unaccounted income of ₹ 8.00 crores (approx). However, while filing return of income, the assessee-firm claimed expenses of ₹ 8 lakhs on account of professional fees. We haves perused the statement of partners recorded by survey party. On perusal of the statements, we find that while making disclosure of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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