TaxTMI 
TaxTMI 
2023 (9) TMI 942
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....of the Income Tax Act 1961, [in brevity 'the Act'] for A.Y. 2019-20. The impugned order was emanated from the order of the ld. DCIT, Central Circle-1, Jalandhar, [in brevity 'the AO'] order passed u/s 144 of the Act. 2. The assessee has taken the following grounds: "1. That the order of the Ld. CIT(A)-5, Ludhiana is against law and facts of the case. 2. That the Ld. CIT(A) erred in sustaining the AO's order to the extent of considering the amount of Rs. 12,50,321/- as Income from undisclosed sources and treating it as unexplained money under section 69A of the Income Tax Act and charge tax as per provisions of Section 115BBE of Income Tax Act, 1961 without appreciating that this amount was duly shown as income under....
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.... attention in page no. 18 of APB where the assessee voluntary offered business income during survey amount to Rs. 29 lacs. The ld. AR also invited our attention in statement of the Sh. Deepak Setia, assessee, taken on dated 27.02.2019 where the assessee made voluntary surrendered the business income Rs. 29 lacs, annexed in APB page 30. The surrendered income of the assessee declared in survey in following manner: Particulars Amount in Lacs Short cash 1,83,000/- Short stock 12,94,000/- Other discrepancies 14,23,000/- Total 29,00,000/- 4.1 The ld. AR in argument submitted that the entire amount was declared in the return filed u/s 139(1) and paid the tax in normal rate and treated the income as business income....
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.... Therefore. in our opinion, it is not unreasonable to hold that any amount representing secret income arose out of business of the firm." Further, same view has been taken by Calcutta High Court in case of Mansfield and Sons v. CIT [1963] 48 ITR 254. 4.3. Further, respectfully reliance is also placed on the following judgments: Hon'ble ITAT-Chandigarh Bench in the case of M/s. Sham Jewellers in ITA No. 375/CHD/2022, date of order-22/08/2022 wherein, it has been held as under: "Ground Nos. 8 El 9 challenge the action of the lower authorities in applying the provisions of section 115BBE and thereby charging tax at the rate of 60%. The main thrust of the arguments of the Ld. AR has been that all the additions made or sustained r....
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....tion is certainly without forming proper basis for conversion into business income to non-business income. The revenue was not able to submit any evidence during assessment and appeal proceeding that the said income is not connected with the business income of the assessee or accumulated from non-recognising source. Hence, when all the incomes earned by the assessee are only from the business income of the assessee, there do not arise any question as to application of provisions of section 69A of the Act and hence taxing such income at special rate as per section 115BBE is improper. It is a settled principle in law that when there is no other/separate source of income identified during the course of survey or during the course of assessm....