Only “Profit element” embedded in gross receipts added as “Undisclosed income” should be charged to tax if the same are in respect of business transactions:

AO made addition of the gross receipts as “Undisclosed Income”. The Hon’ble ITAT held that only “Profit element” embedded in such gross receipts should be charged to tax since the said receipts were in respect of business transactions. Hon’ble High Court dismissed the tax appeal preferred by the Revenue since it didn’t give rise to any substantial question of law.

[JINENDRA S. JAIN - TAX APPEAL No.2280 of 2009 - GHC &
PANNA CORPORATION - TAX APPEAL No.323 with 325 of 2000 - GHC]