TaxTMI 
TaxTMI 
2025 (3) TMI 1558
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....APL/S/250/2024-25/1061395569(1), ITBA/APL/S/250/2024-25/1061402193(1), ITBA/APL/S/250/2024-25/1068624370(1), ITBA/APL/S/250/2024-25/1068621763(1), ITBA/APL/S/250/2024-25/1068626528(1) & ITBA/APL/S/250/2024-25/1068628718(1) all dated 12.09.2024 for Assessment Years 2021-22 respectively. 2. Shri Devesh Poddar, Advocate appeared on behalf of the appellant and Shri Khubchand T. Pandya, Sr. DR appeared on behalf of the revenue. 3. It was submitted by the Ld. AR that the assessee are individuals who are family members of a group called Atibir Group. There was a search in the Atibir Group of cases on 27.03.2021. In the course of search, certain declarations were made and the abovementioned assessee had filed their returns of income u/s. 139(1) of the Act. In the returns filed, the assessee had disclosed the cash and jewellery which were found in the course of search as business income. It was the submission that the returns filed by the assessees were assessed u/s. 143(3) of the Act and the returned income shown by the assessee were accepted without making any additions. However, the Assessing Officer treated the income disclosed by the assessee as business income ....
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.... ITA No. 425/Ran/2024 Sri Harish Kumar Sarawgi The assessee declared Rs. 9,00,000/- as Income against the disclosure of cash - Rs 8,97,800/ -. ITA No. 426/Ran/2024 Sri Santosh Kumar Sarawgi The assessee declared Rs. 23,15,000/- as Business Income { Trading of Iron & Steel Scrap) against the disclosure of cash - Rs. 23,11,000/ -. ITA No. 427/Ran/2024 Smt Suni la Devi Sarawgi The assessee declared Rs. 24,12,442/- as Income against the disclosure of Jewellery - Rs. 24,42,442/- ITA No. 82/Ran/2024 Smt Manju Devi Sarawgi The assessee declared Rs. 23,10,000/- as income against the disclosure of cash - Rs. 20,61,000/ -. ITA No.83/Ran/2024 Smt. Aakriti Sarawgi The assessee declared Rs. 14,11,858/- as Income as against the disclosure of Jewellery Rs. 14,11,858/ -. The assessee declared Rs. 14,11,858/- as Income as against the disclosure of Jewellery Rs. 14,11,858/ -. 5. That as stated above, the Ld AO has simply re-characterized the disclosed income and taxed the same at special rate U/s 115BBH without making any addition to the returned income. 6. We would like to quote the decision of the following decisions in s....
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....the relevant provisions and how the explanation called for and offered by the assessee is not acceptable in the facts of the present case which is clearly absent in the instant case. Therefore, where the ld PCIT himself is not clear about the applicability of relevant provisions and in the same breath holding the Assessing officer to task by not invoking the said provisions is clearly shooting in the dark which cannot be sustained in the eyes of law and the order so passed therefore cannot be held as erroneous in the eyes of law. C) ITAT Chandigarh in the case of M/s Famina Knit Fabs Vs ACIT in ITA No. 1494/Chd/2017 dated 08/02/2019 has held that :- 20. Clearly, it is evident from the above that the surrender was on account of debtors/receivables relating to the business of the assessee only. The Revenue has accepted the surrender as such, as being on account of receivables. It follows that the debtors were generated from the sales made by the assessee during the course of carrying on the business of the assessee, which was not recorded in the books of the assessee. Though the said income was not recorded in the books of the assessee but the source of the same sto....
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....had not made any investment in immovable property within 6 years and the entire amount of the excess cash was generated from undeclared sale of medicine. So, the source of excess cash is from business. Therefore, we are setting aside the impugned appeal order. Accordingly, the application of section 115BBE an amount of Rs.7,12,805/- is bad in law. Hence, the assessee will be assessed related to excess cash under normal rate of tax not U/s 115BBE of the Act. As such, in view of the above mentioned facts and laws quoted, we would like to submit that the ld. AO was not justified in taxing the disclosed amount U/s 115BBE which otherwise has been surrendered as income from business. We shall be grateful for you kind consideration and necessary orders." 4. The ld. AR also placed reliance on the various decisions of the Coordinate Bench of the Tribunal, Delhi Bench and Amritsar Bench. It was the submission that as the assessee has disclosed the amount in their original returns and the same has been offered as business income and no addition having been made or proposed by the Assessing Officer the provisions of section 115BBE cannot be applied, the income of the asses....