TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 978
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.... income on 10.02.2021 declaring total income at Rs. 2,70,64,470/-. A survey action under Section 133A of the Income Tax Act was conducted upon the business premises of the assessee on 05.03.2020. During the course of survey operation, assessee had made surrender of Rs. 1,50,00,000/- which included Rs. 48,48,280/- incurred on account of renovation of office building and Rs. 52,01,761/- on account of alleged excess stock found at the business premises of the assessee. These amounts have been offered by the assessee for taxation but AO has applied Section 69A/69C and applied the rate of taxation at 60% provided under Section 115BBE. He was of the view that this is unexplained income of the assessee. 4. Appeal to the CIT(A) did not bring any relief to the assessee. 5. The ld. Counsel for the assessee took us through the statement of the assessee recorded under Section 131/133A of the Income Tax Act on the date of survey. Typed copy of this statement is available at page No.55 of the Paper Book. He specifically drew our attention towards Question No. 12, 14, 18 and 19 of the statement. On the strength of these replies, he submitted that at that very time it was disclosed by the as....
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....ent year 2020-21 as additional business income over and above my regular profits subject to no penal action. I undertake to pay the due advance tax on the additional income offered on or before 31.03.2020. The proceedings u/s 133A have been carried in very peaceful and cordial atmosphere and the additional income has been offered voluntarily to buy peace of mind without any pressure as far. 6. Contrary to this, there is nothing possessed by the Revenue. 7. On the other hand ld. DR contended that the Revenue Authorities have specifically held that these are unexplained incomes of the assessee which required to be assessed under separate rate of taxes. She relied upon impugned orders. 8. We have duly considered the rival contentions and gone through the record carefully. In order to attract Section 69A/C, there has to be discovery of any money, bullion, jewellery or other valuable articles owned by the assessee and such money, bullion, jewellery etc. is not recorded in the books of account of the assessee maintained by him for any source of income and the assessee offers no explanation about the "nature and source of acquisition" of the money. If this provision is being exam....
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....harging tax at the rate of 60%. The main thrust of the arguments of the id. AR has been that all the additions made or sustained relate only to the business income of the assessee and that nowhere in the assessment order has it been alleged that some other source of income had been detected which gave rise to additional income. It is seen that during the course of assessment proceedings, the various explanations submitted by the assessee hove duly mentioned that the surrendered income was derived from the business. A perusal of the assessment order would also show that nowhere in the body of the assessment order, the AO has even contradicted this explanation of the assessee. The AO has not brought on record any iota of evidence to demonstrate that the assessee had any other source of income except income from business and, therefore, it is our considered view that deeming such income under the provisions of sections 68 or 69 would not hold good. In our view, in such a situation, the AO could not have legally and validly resorted to taxing the income of the assessee at the rate of 60% in terms of provisions of section 115BBE of the Act." * In addition to this, in the case o....
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....ITAT, ITA No. 1127/CHD/2019, has stated as under: 'The AO has not pointed out any unexplained credit in the books of account, any unexplained investment, any unexplained money, bullion or jewellery, any unexplained expenditure or any amount of loan repaid in the assessment order in this respect. Therefore, the provisions of Section 68, 69, 69A, 69B, 69C and 69D are not attracted on the surrendered amount of Rs. 15 lacs. The said amount of Rs. 15 lacs was offered in case any discrepancy is found in the books of account. However, in actual neither any unexplained investment nor any unexplained expenditure or otherwise any unexplained asset was found during the search action so far as the aforesaid surrender of Rs. 15 lacs was concerned. In these circumstances, the aforesaid surrender of Rs. 15 lacs can be said to have been offered to cover up the discrepancies in respect of likely disallowances of claims, if any, relating to its business income. 9. In view of this, since the aforesaid surrender is not covered under the provisions of Section 68, 69, 69A, 69B, 69C and 69D, the provisions of Section II5BBE are not attracted in this case. 10. In view of the....