2025 (6) TMI 284

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....s to the assessed u/s 69A r.w.s. 115BBE and to be charged to a special rate of tax is wholly misconceived and against the facts and circumstances of the case. 4. That the case laws which have been cited by the PCIT, Patiala are not applicable to the facts of the case. 5. That the worthy PCIT, Patiala has erred in applying the (Explanation 2) to section 263 inserted w.e.f 01.06.2015 as the concerned Assessing Officer had duly made appropriate enquiries and applied his mind and assessed the income offered during survey as business income. 6. That the appellant craves leave to add, amend, and alter any of the grounds of appeal or to take any additional grounds of appeal before the appeal is disposed off. 3. Brief facts, as per the written submissions filed by the Counsel of the Assessee, are as under: - 1. The assessee is a doctor engaged in her medical practice along with a retail sale of medicines at her clinic only. For the said profession, the assessee maintains a complete set of books of account which are duly audited by a chartered accountant and on the basis of such audited set of financial statements; the assessee files her return of income. 2. For the year under co....

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....s duly produced the books of account maintained by the assessee for verification by the Ld. AO. 8. Subsequently, after careful perusal of the records and documents and after due application of mind on the books of accounts produced by the assessee during the course of assessment proceedings, the assessment was concluded and the assessment order dated 25.03.2019 was passed u/s 143(3) of the Act. It is pertinent to mention here that the Ld. AO. has accepted the returned income of the assessee and assessed the total income of the assessee at returned income of the assessee without any adverse remark over the submissions made by the assessee during the course of assessment proceedings. 9. Thereafter, in the case of the assessee, jurisdiction u/s 263 of the Act was assumed by the PCIT and a Show Cause Notice ('SCN') dated 08.11.2019, 21.01.2021 was issued to the assessee wherein, the Worthy PCIT show caused the assessee as to why the original assessment in the case of the assessee should not be set aside and the case of the assessee be selected for revision assessment on the grounds that the amount surrendered by the assessee to the tune of Rs. 40,00,000/- during the survey ....

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....ion of mind as the only issue for selection of case of the assessee for scrutiny itself was the surrender made by the assessee during the course of survey action. 2. Furthermore, it is hereby pertinent to mention here that in the case of the assessee, the Ld. AO vide notice dated 16.01.2019 has specifically asked the assessee about the surrender of Rs. 40,00,000/- made by the assessee during the course action wherein, the Ld. AO has asked the assessee to justify the item wise surrender made by the assessee and in response to the said notice, the assessee has duly produced her books of account and submitted a detailed explanation with regard to the amount surrendered by the Ld. AO vide her reply dated 20.01.2019. Hence, The AO took a POSSIBLE VIEW on the taxability of income surrendered by the assessee and accepted the sum surrendered as part of business income of the assessee vide his assessment order dated 24.12.2019 passed u/s 143(3) of the Act. 3. Further, the revision proceedings u/s 263 of the Act have been initiated merely on the basis of DIFFERENCE OF OPINION which cannot be taken as a ground to determine the order passed by the AO as erroneous and prejudicial to the rev....

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.... of income of the assessee. In this regard, it is hereby submitted when the assessee does not have any source of income other than the medical profession whether known or unknown and no adverse remark has been passed by the Ld. AO with regard to the same in the assessment order, hence, the source of excess cash found and advances is only the business income of the assessee and therefore, the same has correctly been showed by the assessee in his profit and loss account. Reliance in this regard is placed on the judgment of Hon'ble Chandigarh Bench of ITAT in the case of Gandhi Ram in ITA No. 121/CHD/2021. 8. We have considered the findings given by the ld. PCIT in his order passed u/s 263 and we have also considered the arguments made by the ld. DR during the proceedings before us. We have gone through the written submissions filed by the Counsel of the Assessee and we have also seen different case laws brought on record. We find that the Chandigarh Bench of the Tribunal in the case of Gandhi Ram in ITA No. 121/Chd/2021 (supra) has very clearly given its findings almost on the same issue. The Tribunal in the case of Gandhi Ram in ITA No. 121/CHD/2021 has given its findings as un....