Deemed income classification denied where surrendered receipts are linked to business activities, avoiding higher tax rate. Where surrendered cash, advances and stock discrepancies identified in a survey are linked to ordinary business activities and the assessee supplies ... Summary
Deemed income classification denied where surrendered receipts are linked to business activities, avoiding higher tax rate.
Where surrendered cash, advances and stock discrepancies identified in a survey are linked to ordinary business activities and the assessee supplies specific explanations of source and nexus, the deeming provisions for unexplained investments and unrecorded ownership do not automatically apply; accordingly the higher-rate taxation applicable to incomes classified as deemed income is inapplicable and the amounts are treated as business income for tax purposes.
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