Tax Authority Corrects Error: Company, Not Managing Director, Liable for Undisclosed Income and Expenditure Under Tax Law.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Undisclosed unaccounted expenditure and undisclosed income - By the connotation of "right person", it is meant the person who is liable to be taxed, according to law, with respect to a particular income. And that the expression "wrong person" is obviously used as an antithesis of the expression "right person" only. - We observe that this assessee is the "managing director" in the company. - And that it is this latter entity which the fact is engaged in all the business activity(ies) and has been assessed separately throughout. A company is very a body corporate and a distinct entity apart from its director. - CIT(A) has rightly deleted these twin additions in the assessee/individual's hands - AT....