The Tribunal held that once the income was credited to the profit and loss account, corresponding expenditure relatable to the income also had to be debited into the profit and loss account. There was no error in the reasons given by the Commissioner (Appeals) to delete addition made towards undisclosed income found during the course of search. (AY 2014-15)
ACIT v. Vendhar Movies (2022)97 ITR 17 (SN.) (Chennai)(Trib.)
S. 69C : Unexplained expenditure-Undisclosed income declared during search and seizure-Income credited to books of accounts-Corresponding expenditure to also be included-CIT (A) justified in deleting additions.[S. 132(4)]