search servey and seizure

More documents

Recommendations

Info

law is amended from 1.4.2000 and now the same are treated as not anallowable expenditure. However routine expenses at Govt. offices to getthe legal work done can be treated as speed money and may be allowedas exp. of routine nature.Q.6 Whether amount paid for security charges are allowed , as deduction?Ans. Yes, Amount paid as security charges are distinguishable from amountpaid as protection money to extortionists. Therefore legal and genuinebusiness expenditures are allowed whereas illegal, unlawful andexpenditures incurred against public policy are not allowed in view of theamended provisions of section 37(1) of Income-tax Act from 1.4.2000.Q.7 Expenditure incurred in business outisde books of accounts can be addedas undisclosed income.Ans. Yes, expenditure incurred outside books of Accounts can be added asundisclosed income but again deduction of expenditure will be allowedhence finally taxable income will be NIL.Reliance can be placed on the following judgements :(i)(ii)(iii)(iv)(v)(vi)19 ITD 306 (Ahd.) S.F. Wadia v/s. ITO31 ITD 114 (Mad) M.K. Mathivathanam v/s ITO52 ITD 103 (Pat) Nishat Housing Dev. (P) Ltd. v/s. ACVT127 ITR 90 (SC) CIT v/s. Piard Singh50 ITR 233 (Bom) CIT v/s R. B. Rungta & Co.49 ITR 31 (Bom) CIT v/s Pranlal Kesurdas.Q.8 Assessee owning vast Agricultural Lands and same reflected in accountsand regular assessment completed. Whether roving enquiries be madequestioning the details of Agricultural land and income thereof?Ans. Under search assessment roving enquiries can be made in respect ofcompleted assessments, which is likely to be disturbed on account ofsearch , if some false documents are found during the course of search.IV. Addition on surmises & presumptions :
Q.9 Whether additions under search assessment can be made on the basis ofpresumptions, Assumptions, Surmises and conjectures etc.?Ans. No. Additions under search assessment can be made only with regard toas such as cash, jewellery unexplained investments valuable and noadditions can be made on the basis of presumptions, assumptions,surmises and conjectures etc."Reliance can be placed on the following decided case laws :a) 71 ITD 128131 ITR 597 (SC) - K. P. Varghese.held when there is no material found addition on surmises isunjustified in a search assessment.b) 66 ITD 510 (Pune) Kasat Textiles Pvt. Ltd. v/s ACIT -Information in a persons books of accounts unless proved wrongshould be accepted.c) 63 ITD 153 (Bom) ACIT v/s Shailesh ShahHeld addition based on suspicion cannot be sustained.d) IT (SS) A No. 118/Mum/96 - Shri R. M. Bhagwandas Raheja v/s.ACIT.held vague information found in search cannot be used against theAssessee.Q.10 During the course of search valuable documents / Agreements standing inthe names of children, who are major and assessed to tax are foundwhether, addtions can be made in the hands of Assessee?Ans. NoQ. 11 If during the course of search some papers are found describinghousehold expenditure for 2 months. Based on the said loose paperwhether the A.O. can make addition for the entire year?
Page 1 and 2: AMENDED PROVISIONS OF ASSESSMENT RE
Page 3 and 4: ordered or where stay order by cour
Page 5 and 6: Ans. Yes, he can be present. :Q. 5
Page 7 and 8: search, to leave the premises or he
Page 9 and 10: and the question is as to who can m
Page 11 and 12: and 1-4-2007 to 8-7-2007. Thus, the
Page 13 and 14: The form of return was 2Bnot specif
Page 15: ii) Wall Street Construction ltd. v
Page 19 and 20: investments are less than income, o
Page 21 and 22: Q. 24 Pass book maintained by an as
Page 23 and 24: Q. 28 During the course of search i
Page 25 and 26: such properties but the possibility
Page 27 and 28: jewellery is received by way of gif
Page 29 and 30: Under rule 6F of Income-tax Rules,
Page 31 and 32: he may be better advised to give th
Page 33 and 34: Note: In case the duplicate books o
Page 35 and 36: SURVEYProvisions relating to Sectio
Page 37 and 38: h) Where accounts are maintained on
Page 39 and 40: Director, Deputy Director, Assessin
Page 41 and 42: viii.Care should be taken to ensure
Page 43: of such business or profession to f

search servey and seizure

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?