2023 (2) TMI 573

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....ellery should be assessed as income from business instead of assessing as income u/s 69A. 2. That the learned Commissioner of Income Tax (Appeals) is not justified in upholding Assessing Off icer's view that assessee has not surrendered undisclosed income during search proceedings." 3. Brief facts of the case are that during the relevant assessment year, the assessee was engaged as working partner in a partnership firm named M/s. C.LAL Realtors, which was engaged in the business of primarily broking in real estate and was entitled to salary from the firm and share in prof it/loss of the firm. The assessee also was engaged in property broking business of his own and also made investment in properties. 4. A Search & seizure ope....

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....he AO ignoring the explanation provided by the assessee and without bringing any contrary evidence on record, passed the assessment order where income tax return fi led by assessee was accepted, however AO treated the amount of business income of Rs. 42,36,027/- as income from other sources by invoking section 69A of the Act. AO also applied section 115BBE of the Act and raised a demand of Rs.22,72,340/-. 8. Before the Ld. CIT(A), the assessee reiterated its stand taken before the AO. The ld. CIT(A) confirmed the order of AO and thereby confirmed the demand of Rs.22,72,340/-. 9. Aggrieved the assessee f i led appeal before us. 10. At the outset, it was argued that it is relevant to point out that both AO and ld. CIT(A) has accepted....

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.... 14. The provisions of Section 69A are as under: "69A. Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Off icer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year." 15. The provisions....