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TMI Blog2023 (8) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... to the P L A/c, the presumption is that income is derived from business only and there is no evidence on record by the Assessing Officer to show that the assessee-appellant firm had derived this excess income under the head other than the business carried on by the assessee-appellant. Further once the income is credited to P L A/c, it cannot be said that the source of the excess income is unexplained. The decisions relied on of Kim Pharma Pvt. Ltd. [ 2013 (1) TMI 495 - PUNJAB AND HARYANA HIGH COURT] and SVS Oils Mills [ 2019 (5) TMI 1392 - MADRAS HIGH COURT] have no application to the facts of the present case, inasmuch as, those cases are relates to where no explanation as to the source of the excess stock was found and not sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer vide order dated 13.02.2013 passed u/sec. 143(3) of the Act at a total income of Rs. 6,16,210/- as against the returned income of Rs. 5,80,910/-. Subsequently, the said assessment was set aside by the learned Pr. CIT-2, Nashik vide order passed u/sec. 263 of the Act dated 09.03.2015 on the ground that the Assessing Officer had allowed excess remuneration to partners of Rs. 1,69,777/- by considering the excess income of Rs. 7,50,190/- declared by the assessee during the course of survey as business income. Consequent to the order of the learned Pr. CIT-2, Nashik, the Assessing Officer completed the assessment vide order dated 29.02.2016 disallowing the excess remuneration of Rs. 1,69,777/- by treating the income declared durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse of survey proceedings to be assessed. It is the contention of the assessee-appellant that the excess income declared during the course of survey proceedings is credited to the P L A/c as it is derived from business carried on by the assessee-appellant firm. Whereas the Assessing Officer was of the opinion that the excess income declared should be assessed under the head Income from other sources which does not qualify for book profits as defined under the provisions of Sec. 40(b) of the Act for the purpose of computing the quantum of allowable remuneration to the partners. The Assessing Officer failed to note that once the income is credited to the P L A/c, the presumption is that income is derived from business only and there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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