TaxTMI 
TaxTMI 
2020 (7) TMI 240
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....he maximum rate. 2. The appellate order being not based on facts, and in law, is illegal & wrong. 3. The appellant craves leave to add/alter/amend the above grounds of appeal are and when, necessity or occasion arises." 3. Brief facts of the case as culled out from the records are that the assessee is proprietor of two concerns namely M/s. Rajesh Industries and M/s. R.R. Textile Mills which are engaged in the business of textiles, hand loom and power loom. Return of income declaring income of Rs. 1,02,17,110/- for the Assessment Year 2015-16 was filed on 30.09.2013. Case selected under scrutiny followed by serving valid notice u/s 143(2) of the Act. A survey u/s 133A was conducted on 12.12.2014 at the business premises of M/s. Rajesh Industries and M/s. R.R. Textile Mills. During the course of survey various anomalies were found which included excess stock, excess cash and receivable from sundry parties not shown in the books. The assessee surrendered following income stating that he is unable to explain the source for the following :- a) Excess stock Rs. 75,46,114/- b) Excess Cash Rs. 9,60,036/- c) Receivable from sundry parties not sho....
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....income by excluding the surrendered income from income under the head business/profession and including the same under "Income from other sources" since Section 115BBE of the Act is applicable only to income referred to in Section 68, Section 69, Section 69A, 69B, 69C & 69D of the Act. He also submitted that the revenue authorities has not pointed out that the excess stock has any nexus with any other receipts. The excess stock found during the survey operation is not separately and clearly identifiable but is part of mixed lots of stock found at the premises which included declared stock as per books and also the excess stock as computed by the authorised officers during the survey operation at the business premises. Since excess stock is a result of suppression of profit from business over the years and has not been kept identifiable separately but is the part of overall physical stock found, the investment in the excess stock should be treated as business income. Where source of investment/ expenditure is clearly identifiable and alleged undisclosed asset has no independent existence of its own or there is no separate physical identity of such investment/expenditure then what is....
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....use (a) and clause (b), at the rate of sixty per cent; and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i). (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance [or set off of any loss] shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) 65[and clause (b)] of sub-section (1). Section 68 Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year : Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explana....
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....nion of the Assessing Officer, satisfactory, the excess amount may be deemed to be the income of the assessee for such financial year. Section 69C Where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the Assessing Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year.Provided that, notwithstanding anything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income. Section 69D Where any amount is borrowed on a hundi from, or any amount due thereon is repaid to, any person otherwise than through an account payee cheque drawn on a bank, the amount so borrowed or repaid shall be deemed to be the income of the person borrowing or repaying the amount aforesaid for the previous year in which the amount was borrowed or repaid, as the case may be : ....
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....ection 68 to Section 69C the highlighting part which is common is that if "the assessee offers no explanation about the nature of source of" either cash credits, investment, money bullion, jewellery or other valuable article investment and expenditure. 13. Let us examine the statement given by the assessee during the course of survey in reply to questions raised about the source of Excess stock, Excess cash and undisclosed sundry debtors. 14. Now in order to know that whether the assessee has offered any explanation to the excess stock, excess cash or receivable from sundry parties, from perusal of the statements in the reply given by the assessee in Question No.3, 5 and 6 we find that assessee has categorically accepted that "he is unable to explain the source of excess cash, excess stock and unaccounted receivables". There is no other evidence brought on record by the assessee to show that some unaccounted purchases for the year or unaccounted sales or unrecorded sales happened during the year or details of the debtors which can show the nexus of the surrendered income as business income for the year under consideration. 15. The alleged surrendered income is the cumulati....
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.... covered u/s 115BBE of the Act. The decision of the Hon'ble Ahmedabad Bench Tribunal in the case of Chokshi Hiralal Mangilal dated 21.01.2011 is also not relevant since Section 115BBE was inserted from 1.4.2013. The decision of Hon'ble Jodhpur Bench in the case of Vasu Singhal V/s ITO is also not applicable since the decision is of the Single bench and is not binding on double bench of Tribunal. 18. We therefore in the given facts and circumstances of the case are of the considered view that though the alleged surrendered income of Rs. 92,81,150/- is a business income but since assessee being individual having no limitation of earning income from sources other than for the objects of the business and also the assessee having not offered any explanation in the statement given during the course of survey which stands unrebutted, therefore the alleged unexplained/undisclosed income of Rs. 92,81,150/- is liable to be taxed as income falling under Section 68 to 69D of the Act as applicable to the type of income and has been rightly taxed by Ld. A.O applying the higher rate of tax provided in Section 115BBE of the Act. We therefore confirm the findings of Ld. CIT(A). The asses....
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....¤¾ अतिरिकà¥à¤¤ आय के रूप में वितà¥à¤¤à¥€à¤¯ वरà¥à¤· 2014-15 से संबंधित निरà¥à¤§à¤¾à¤°à¤£ वरà¥à¤· 2015-16 के लिठअघोषित आय समरà¥à¤ªà¤¿à¤¤ ( surrender) करता हूठऔर उस पर देय आयकर का à¤à¥à¤—तान करने का वचन देता हूठ। रà¥. पà¥à¤°à¤¶à¥à¤¨ 5. आपके Concern पर सरà¥à¤µà¥‡à¤•à¥à¤·à¤£ कारà¥à¤¯à¤µà¤¾à¤¹à¥€ के दौरान 13-14 उदà¥à¤¯à¥‹à¤— नगर, बà¥à¤°à¤¹à¤¾à¤¨à¤ªà¥à¤° पर ....
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....के रूप में वितà¥à¤¤à¥€à¤¯ वरà¥à¤· 2014-15 से संबंधित निरà¥à¤§à¤¾à¤°à¤£ वरà¥à¤· 2015-16 के लिठअघोषित आय समरà¥à¤ªà¤¿à¤¤ (surrender) करता हूठऔर उस पर देय आयकर का à¤à¥à¤—तान करने का वचन देता हूठ। पà¥à¤°à¤¶à¥à¤¨ 6. मैं आपको BI-1 राजकमल गà¥à¤°à¥à¤ª की डायरी दिखा रहा हूठजिसके कà¥à¤² 1 से 25 पृषà¥à¤ लिखित है जिसे Annexure 'B' मà¥....