TaxTMI 
TaxTMI 
2024 (5) TMI 1628
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....ecisions of the Hon'ble Apex Court and of the jurisdictional Punjab & Haryana High Court have not been considered properly for the purposes of admitting the additional evidence. 3. Notwithstanding the above said grounds of appeal, the Ld. CIT (A) has erred in confirming the action of the Ld. AO in treating the cash as offered during survey to the tune of Rs. 4,07,000/- as deemed income u/s 69A r.w.s. 115BBE of the Income Tax Act, 1961. 4. The Ld. CIT (A) has failed to appreciate that the additional evidence as submitted by the assessee during the course of hearing had a close nexus with the determination of the applicability of Section 69A r.w.s. 115BBE on the cash of Rs. 4,07,000/- as offered during survey. 5. That the appellant craves to leave add, amend alter any ground of grounds of appeal before the hearing of case." 3. Briefly facts of the case are that a survey operation u/s 133A of Income Tax Act 1961 was carried out at the business premises of M/s G. H. Derma Centre, 39-43, Shopping Complex, Tripuri, Patiala on 23.04.2018 and the assessee Mrs. Svetlana Gorodinskaia is the proprietor of the said concern. During the course of surve....
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....Officer and remand report was called for. In this regard, the ld. CIT (A) held that the patients' details are not available as the assessee has merely submitted only payments receipts and patient details are not present in the patient register impounded during the course of survey, that the maintenance of patient register as per Form C is mandatory for medical practitioners in Income Tax Rules 1962 and the assessee should have entered the details of these patients in the patient register and in absence thereof, the payment receipts cannot be accepted in support of explaining the source of cash found during the course of survey. The ld. CIT (A) further held that the settled position of law is that nexus between surrendered income and business income needs to be established before the same can be treated as income from business and the assessee has been given opportunity to establish a linkage between surrendered income and business income which she has failed to establish. It was held that for the unrecorded excess cash found during survey proceedings, there can be no presumption to treat the value representing such excess cash as application of business income in absence of any....
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....act that the assessee is engaged in the business and there is no undisclosed or unknown source of income and the source of income surrendered is clearly identifiable and is regular business of the assessee, it is certainly assessable as business income and cannot be considered as income falling under section 68/69A. Further, it was submitted that merely because the assessee taken a mistaken view of the correct legal position by wrongly showing the surrender amount under the head "Income from Other Sources" in the return of income, the same cannot be taken as an admission as there is no estoppel against statute. In the case of the assessee also, it was submitted that the only source of income of the assessee is the business income of the assessee which in the case of the assessee is business of running a dermatological spa centre and there is no other source of income of the assessee which have been identified by the Ld. AO whether known or unknown. Hence, there is no possibility that the excess cash found at the business premises is not related to the business of the assessee. There is even no mention or whisper about any other source of income of the assessee. Hence, in such circu....
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....ces". The same principal has been laid by Hon'ble Madras High court in the case of SVS Oil Mills vs ACIT, ITA No. 765 of 2018, where it has been held that mere the fact that such undisclosed assets have been subsequently recorded in the books of accounts, would not take away such income representing undisclosed assets out of sweep of section 69/69A/69B etc. 7.1 It was further submitted that in the present case, the source of income on account of unexplained cash to the extent of Rs. 4,07,000/- has remained unidentified, unknown, unexplained and undisclosed. Therefore, such income on account of such undisclosed capital/ assets, will be covered as income from other sources u/s 56 of the Act under the residuary head r.w.s. 14 of the Act. As per the provisions of the Act, any income, whose source is not known, would not be classified under the head income from other sources to be covered u/s 56 of the Act. Therefore only the incomes, which flow from known sources, and which are not falling under the head salary, house property, business/profession or capital gain will fall under the head income from other sources. Thus, it is inferred that the income, whose source is n....