TaxTMI 
TaxTMI 
2015 (11) TMI 406
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....d and in so far as the finance business is concerned, it is to be assessed as an association of persons under the name Easy Finance and not under the name of the assessee in his individual capacity. 2. The assessee is doing lottery business under the trade name M/s. Luck Associates, Mangalore. He is also running unregistered finance business under the name and style of Easy Finance. A search as conducted on November 10, 2000, and a cash of Rs. 8,00,000 was seized and gold jewellery weighing 430 grams was found. The assessee in his statement stated that the main stockists of lottery were M/s. Pooja Agencies and M/s. Ganesh Agencies of Delhi, M/s. Sri Laxmi Venkatesh Lottery, Mangalore and M/s. M and Co., Bangalore. The assessing authority p....
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....ons. In those circumstances, the Tribunal was of the view that even the undisclosed income relating to the finance business have to be assessed in the hands of association of persons and not in the hands of the assessee, in his individual capacity. Accordingly, it allowed the appeal, set aside the impugned orders and accepted the case of the assessee. 4. Aggrieved by the said order, the Revenue is in appeal. This appeal was admitted to consider the following substantial questions of law : "(i) Whether, in the facts and in the circumstances of the case, the Tribunal was right in deleting the addition of income from lottery business in the hands of the assessee treating it as Hindu undivided family's income and not the assessee on the b....
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....g authority is without any basis. As is clear from the aforesaid facts, the sales tax registration was done on August 2, 1999, and within two months, the father died. Therefore, the question of the father maintaining the books of account would not arise. After the death of the father, the son is carrying on with the said business. If he had maintained the accounts and if he had disclosed all the amounts in the accounts, it seems that it would not have been treated as undisclosed income. It is because books were not maintained and returns were not filed, the authorities laid their hands on the undisclosed income. Therefore, the Tribunal was justified in the facts of the case in holding that the said amount is to be assessed in the hands of t....