https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=755604 https://www.taxtmi.com/caselaws?id=755604 Revision u/s 263 - income surrendered in survey action u/s 133A - Addition u/s 68 made by CIT - assessee being in medical practice, had made such surrender and returned the same as his professional receipts, taxed at the normal rate i.e. 30% plus surcharge at 12% - As per CIT AO not charged the undisclosed income with wrong application of law HELD THAT:- Assessee had surrendered income in the statement recorded during survey as pertaining to his unaccounted professional receipts. Department had not come across any assets or expenditure, which could be termed as incriminating in nature, on confronting which the assessee had made impugned surrender. The statement reveals that the surrender was voluntarily made by the assessee in response to the query as to what is to be its income for the year. In the absence of any material found during survey provoking surrender by the assessee, and in light of the fact that the assessee had voluntarily surrendered its professional receipt, disclosed the same in its financial statements, which was duly audited, the acceptance of the same by the AO as professional receipts evidently was in accordance with judicial pronouncements and therefore justified. PCIT, has ignored all the above facts as well as legal propositions which were very much part of record before him, and went on to hold that no inquiry was conducted by the AO on the issue of surrender of income during survey by the assessee. DR was unable to controvert the above facts pointed out for the assessee before us. PCIT s finding of non inquiry vis-a-vis the documents and statements recorded during survey, is not based on any hard facts. In fact, the facts on record reveal AO having conducted due inquiry on the issue of surrender made by the assessee and considering the statement of the assessee during survey making voluntary surrender of professional unaccounted receipts, his acceptance of the surrender as business income is in accordance with law. PCIT has merely stated no inquiry conducted by the AO on the records of survey before him, but not pointed out how and on what basis he arrived at this finding.Merely stating that the AO has not examined the records/documents pertaining to the survey cannot be basis for finding the assessment order erroneous. The documents pertaining to the survey form part of the record which was there before the PCIT also and was required to be examined by him for finding error in the assessment order. He was duty bound to go through these records, and point out how the documents pertaining to the survey revealed the acceptance of Rs.15 lakhs surrender made by the assessee as business income, to be an error on the part of the AO. CIT could have arrived at a valid finding of error on the basis of his own examination of records including document or statement recorded of the assessee during survey action undertaken by him u/s 133A. He has not pointed out as to how the documents pertaining to survey could not have lead to a reasonable belief as entertained by the AO that the income surrendered pertained to his professional receipts. We therefore hold that there is no basis for the finding of error by the PCIT of no inquiry by AO in the assessment framed in the present case and the facts on record reveal otherwise. The order passed u/s.263 of the Act is therefore held to be without valid jurisdiction and is therefore not sustainable in law. Case-Laws Income Tax Thu, 30 Nov 2023 00:00:00 +0530