India - Income Tax Act 2010 - Saarc

S. 69 I.T. ACT, 1961 1.362previous year shall be added to that amount, and the result shall betreated as the member’s share in the income of the association orbody ;(c) where the amount apportioned to a member under clause (a) is aloss, any interest, salary, bonus, commission or remunerationaforesaid paid to the member by the association or body in respect ofthe previous year shall be adjusted against that amount, and theresult shall be treated as the member’s share in the income of theassociation or body.(2) The share of a member in the income or loss of the association or body, ascomputed under sub-section (1), shall, for the purposes of assessment, beapportioned under the various heads of income in the same manner in which theincome or loss of the association or body has been determined under each headof income.(3) Any interest paid by a member on capital borrowed by him for the purposesof investment in the association or body shall, in computing his share chargeableunder the head “Profits and gains of business or profession” in respect of his sharein the income of the association or body, be deducted from his share.Explanation.—In this section, “paid” has the same meaning as is assigned to it inclause (2) of section 43.]Cash credits.1368. 14 Where any sum is found credited in the books 15 of an assessee maintainedfor any previous year, and the assessee offers no explanation about thenature and source thereof or the explanation offered by him is not, in the opinionof the 16 [Assessing] Officer, satisfactory, the sum so credited may be charged toincome-tax as the income of the assessee of that previous year.Unexplained investments.1769. Where in the financial year immediately preceding the assessment yearthe assessee has made investments which are not recorded in the books ofaccount, if any, maintained by him for any source of income, and the assesseeoffers no explanation about the nature and source of the investments or theexplanation offered by him is not, in the opinion of the 16 [Assessing] Officer,satisfactory, the value of the investments may be deemed to be the income of theassessee of such financial year.13. See also Circular No. 5, dated 20-2-1969 and Letter [F.No. 222/7/70-IT(A-I)], dated5-8-1971. For details, see Taxmann’s Master Guide to Income-tax Act.14. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.15. For the meaning of the term/expression “any sum is found credited in the books” and“books”, see Taxmann’s Direct Taxes Manual, Vol. 3.16. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.17. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.