Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
Validity of reopening was examined with emphasis on limitation and newly inserted procedural safeguards; since the notice was time-barred the reopening was quashed. Taxation of undisclosed on-money receipts was assessed by estimating profit element; in absence of records the appellate authority adopted a 17% profit estimate on receipts, and allowed telescoping credit for income voluntarily declared under the disclosure scheme, treating declaration as sufficient without source specification. Additions on account of unsecured loans were rejected where the taxpayer proved identity and creditworthiness of lenders with confirmations, PANs, bank statements and subsequent bank repayments; source-of-source proof was not required and acceptance of repayment precluded current year addition.
Validity of reopening was examined with emphasis on limitation and newly inserted procedural safeguards; since the notice was time-barred the reopening was quashed. Taxation of undisclosed on-money receipts was assessed by estimating profit element; in absence of records the appellate authority adopted a 17% profit estimate on receipts, and allowed telescoping credit for income voluntarily declared under the disclosure scheme, treating declaration as sufficient without source specification. Additions on account of unsecured loans were rejected where the taxpayer proved identity and creditworthiness of lenders with confirmations, PANs, bank statements and subsequent bank repayments; source-of-source proof was not required and acceptance of repayment precluded current year addition.
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