TaxTMI 
TaxTMI 
2023 (3) TMI 283
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....f appeal: 1. That the Ld. CIT(A)-5, Ludhiana has erred in confirming the order of the AO ignoring the fact that the AO who passed the order did not have valid jurisdiction over the case. 2. The Ld. CIT(A) has erred in levying tax u/s 115BBE on the amount surrendered as business income by way of receivables. 3. That the CIT(A) has erred in ignoring the submissions in as much as the amount surrendered was part of the business of the assessee and the provisions of section 115BBE were not applicable to the facts the case. 4. That the Ld. CIT(A) has erred in ignoring the letter of surrender filed during the course of survey, which clearly stated that income surrendered was part of the business income." 2. B....
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....& Loss account for the financial year 2017-18. It was submitted that the surrender letter clearly mentions about the nature of surrender being sundry receivables and that the surrender was made to avoid litigation with department and to buy peace of mind and the surrendered income is part of normal business income and subject to no penal action of any kind including penalties and prosecutions. It was further requested that this offer may please be accepted. This letter of surrender- was filed with the JCIT, Moga Range, Moga. It was submitted that the survey report u/s 133A(1) of the Act mentions the fact that survey was conducted at business premises of the assessee and surrendered income is additional income of the assessee, which depicts ....
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....present appeal is squarely covered by the following decisions: 1. Gaurish Steels P. ltd. vs. ACIT (2015) 43 ITR (Trib) 0414 (Chd) 2. DCIT VS. Khurana Mills Pvt Ltd ITA NO. 745/2016 (Chd) 3. Shri Harish Sharma vs. ITO in ITA No. 327/2020 A.Y. 2017-18 dated 11.05.2021 (Chd) 4. Renny Strips Pvt. Ltd vs. ACIT in ITA No. 1018/2014 A.Y. 2011-12 dated 28.12.2015 (Chd) 5. Famina Knit Fabs, vs. ACIT in ITA No. 1494/Chd/2017 A.Y. 2014-15 dated 08.02.2019 (Chd). 6. Sham Jewellers vs. DCIT in ITA No. 375/2022 & Sham Fashion Mall vs. DCIT in ITA No. 315/2022 (Chd) 5. In view of the above submissions and the decisions relied upon, the appellant humbly prays that the order of Ld. CIT(A) be set aside....
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....y proceedings and no adverse inference of any kind will be taken by the department. It is requested that our aforesaid offer may, please, be accepted." 8. The nature of surrendered income was therefore unrealized sundry receivables generated out of out of book sales undertaken by the assessee. The factum thereof has been accepted by the Survey team and where the AO dispute the nature of such surrender or the findings of department's own survey team, the AO has to lead positive evidence to arrive at any contrary finding. Nothing has been brought on record in this regard. Therefore, the picture which is clearly emerging from the material available on record is the nature of surrender is amount of unrealized receivables from the sales under....
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.... (A) in para 9 of his order and which are not disputed, are reproduced hereunder: "9. Adverting now to the facts of the instant case, it is seen that when survey proceedings were conducted at the business premises of the appellant company, a pocket diary was found from the accounts section which contained entries of receivables amounting to Rs. 1.25 crores on page Nos. 27, 28, 31 and 33, which were not recorded in the regular books of account. When these entries were confronted to the appellant company while recording the statement on 15/09/2012, it was stated: "that these entries are sundry receivables which has not been accounted for in the books of account and in order to buy peace of mind, the same is surrendered as income unde....