TaxTMI 
TaxTMI 
2025 (11) TMI 887
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....,170/- as offered during the survey as business income u/s section 69A & 69B of The Income Tax Act, 1961. 2. That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in taxing the amount of Rs. 45,00,000/- surrendered on account of investment in building during survey u/s 69B read with section 115BBE of the Income Tax Act, 1961. 3. That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in taxing the amount of Rs. 5,00,170/- surrendered on account of cash found during survey u/s 69A read with section 115BBE of the Income Tax Act, 1961. 4. That the Ld. CIT (A) has failed to appreciate the various judgments of the Jurisdictional Bench of the ITAT, Chandigarh Bench in ma....
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....d 07.09.2018, an amount of Rs. 50,00,170/- i.e. Rs. 45 lacs was surrendered on account of expenditure incurred on account of construction of building and Rs. 5,00,170/- was surrendered on account of excess cash in hand. The surrender letter was filed on 07.09.2018 and the said income was declared while filing the return of income. An amount of Rs. 50,00,170/- was credited as additional business income in the Trading and Profit and Loss Account, for which, a copy has been placed before us at page 22 of the Paper Book submitted. 3. Further to that, the amount of Rs. 45 lacs was debited to building account and the assessee has offered this sum as additional income over and above the normal business income vide letter dated 07.09.2018. No ot....
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....g Officer has rightly treated the surrendered amount of Rs. 50,00,170/- as unaccounted investment during survey and taxed the same as per the provisions of section 115BBE of the Act, since the amount was not recorded in the books of accounts. 7. Against the order of the Ld. CIT(A) the assessee is in appeal before us. 8. The Ld. Counsel for the assessee argued before us and referred to surrender letter as filed during survey and copy of the same has been placed in the Paper Book, wherein, additional income had been offered and that sum has been credited to Profit and Loss Account. Copy of the surrender letter is being reproduced as under:- Dated 7.9.2018 "To The Joint Commissioner of Income, Central Range,....
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....rendered was on account of construction of building and no other source of income was identified by the department and such surrendered income was held to be business income by the Hon'ble ITAT, Chandigarh Bench, Chandigarh in the decision reported in [2024] 109 ITR (Trib.) 619 (Chd.), wherein, it was held as under: - "Section 69B, read with section 115BBE, of the Income-tax Act, 1961Undisclosed investment (Building) - Assessment year 2018-19 - Assessee firm was engaged in business of spinning mills - During course of survey conducted upon assessee, one of its partners surrendered certain amount on account of addition made to factory building Assessing Officer was of view that said amount was to be considered as unexplained inv....
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....dered income be taxed at the normal rate of tax. 12. The Ld. DR argued that since the source of income has not been identified during the course of such survey, the Id. CIT (A)has very rightly held the sum of Rs. 50,00,170/- lacs as deemed income and rightly confirmed taxing the same as per the provisions of section 115BBE. The ld. DR relied upon the order of Ld. CIT(A) and also relied upon the judgments as quoted by the CIT(A) in his order.. 13. In rejoinder to the argument of the (DR), the Ld. Counsel of the assessee stated that all the judgments in the cases quoted by the Ld. CITA) in his order like Kim Pharma Pvt. Ltd. v CIT 216 Taxman153 (PEtH), Famina Knit Fab v ACIT 176 ITD 246 (Chandigarh Trib.),Pr. CIT v. Khushi Ram & Sons Fo....
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....the assessee are also quite apt as under:- i). Smt. Renu Singla Vs PCIT in ITA No.58/Chd/2021, videorder, dated 26/11 /2024. ii). M/s Veer Enterprises asreported in [2024] 158 Taxmann.com 655 (Chd.Trib.). iii). Sh. Krishan Kumar, as reported in [2024} 162taxmann.com 518 (Chd.Trib.). iv). Judgement in the case of Sh. Gandhi Ram in ITA.121/Chd/2021. In the case of M/s Veer Enterprises, the following findings have been given by Tribunal as under:- "Section 69A, read with sections 69B and 28(i), of the Income-tax Act, 1961 - Unexplained money (Amount disclosed at survey) - Assessment year 2019-20 During course of survey under section133A, assessee surrendered excess stock, cash and receivables, st....