2014 (11) TMI 1218

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....20 lacs as business income. The disallowance out of claimed remuneration made deserves to be deleted. 3. The brief facts of the case are that a survey u/s 133A of the Act was carried out at assessee's office premises on 06.10.2006 wherein the assessee admitted unaccounted income of Rs. 20,00,000/- for the AY 2006-07. In the Return of Income, the assessee showed the surrendered amount as part of its income and claimed remuneration of Rs. 5,01,680/- from such total income u/s 40(b)(v) of the Act which was allowed by the Assessing Officer. According to the CIT, if the sum of Rs. 20 lacs additionally declared by the assessee as income which falls u/s 69A of the Act is reduced, then the Profit & Loss account gets converted into net loss and t....

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....this Bench of the Tribunal in the case of DCIT v. New Umiya Vijay Saw Mill in ITA No.2447/Ahd/2012, order dated 30.06.2014, wherein the Tribunal held that since at the time of survey, the assessee disclosed the entire income as business income, the Assessing Officer was not justified in bifurcating the same into the income from other sources and income from business or profession. Therefore, the order passed by the CIT(A) treating the disclosed income of the assessee as business income and allowing partners' remuneration amounting to Rs. 13 lacs u/s 40(b) of the Act is upheld. Thus, it was the contention of the AR that the order of the Assessing Officer also supported by the decision of this Bench of the Tribunal. 6. On the other hand, t....