When the profits have been determined by applying of a flat rate, the assessee is entitled to the interest and remuneration paid to the partners

When the profits have been determined by applying of a flat rate, the assessee is entitled to the interest and remuneration paid to the partners, as stipulated in the partnership deed and subject to the provisions of s 40(b) of the ITA, as held by HydTrib in Crescent Real Estates v JCIT — In favour of: The assessee (partly); ITA No 494/Hyd/2010: (AY 2006–2007).

Unexplained investment — No addition can be made under s 69 on the basis of a conflicting statement of a third party or the loose sheets/diaries without giving an opportunity to the assessee to controvert the same.

For making additions under s 69, an unsigned receipt found during the course of a survey is required to be supported by other corroborated evidence.

When the consideration has been accepted by the State Registration Authority, and there is no evidence that the assessee has paid more than mentioned in the sale deed to the vendors, and the transaction is an honest and bona fide transaction and the full value of the consideration paid by the assessee is correctly disclosed to the State Registration Authority, there is no reason to hold that any part of the consideration is not recorded in the books of accounts of the assessee.

The value declared in a registered sale deed, duly confirmed by the vendors, is to be considered as the real consideration in the absence of any cogent material against the consideration mentioned in the sale deed.