TaxTMI 
TaxTMI 
2025 (2) TMI 1663
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.... amount of investments, etc., not fully disclosed in books of account as per provision of section 69, 69A and 69B of the I.T. Act respectively. Therefore, tax is charged on these offered income as per provision of section 115BBE of the I.T. Act, 1961. Since, the assessed income includes income chargeable to tax as per provision of section 115BBE of the I.T. Act, 1961. Therefore, I am satisfied to initiate penalty proceeding u/s 271AAC of the I.T. Act, 1961. Subject to the foregoing remarks, the total income of the assessee is computed as under:- Computation of total income Gross Income u/s 139 of the Act Rs. 1,02,55,225/- Deduction under Chapter VIA Rs. 0/- Net Income Rs. 1,02,55,225/- Assessed total income Rs. 1,02,55,225/- R/o Rs. 1,02,55,225/- Assessed u/s 143(3) of the Income Tax Act on total income of Rs. 1,02,55,230/- (Income of Rs. 30,00,390/-is charged as per provision of section 115BBE of the IT Act). Interest is charged u/s 234B, 234C & 234D. Interest u/s 244A is also withdrawn, as per law. A copy of this order along with ITNS 150 which is part of this order is served upon assessee. A notice of demand u/s 156 of the....
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....on 115BBE of the Act. 10. On 1-11-2021, the assessee submitted his reply to the said show cause notice. 11. The AO was not satisfied with the reply. In this regard, the observations made by the AO need to be extracted for ready reference, and the same read as under:- ''The reply of the assessee is considered but not found satisfactory, because the assessee in its reply has submitted that the source of income was earning from the hospital activities. However, assessee has not submitted any documentary evidence to sustain its claim. The assessee itself had included these offered income in total income under the head "income from other sources" in its return filed for the relevant year. The partner of the assessee firm Shri Rajesh Malav himself admitted in his statement recorded during the survey proceedings that the cash loans given to the various debtors of Rs. 17,03,200/- was not recorded in regular books of accounts of the assessee firm. The source of the cash loans given to various debtors, excess cash and excess stock were also not explained by the assessee during the survey proceedings. Further, during the assessment proceedings, the assessee has also failed to p....
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....3. The only contention raised by the ld. AR for the appellant before us is that while passing impugned order, Ld CIT(A) has not properly appreciated the statement of the representative of the assessee, recorded during survey proceedings, and that when, in its books of account, the assessee clearly incorporated the amount offered for tax by debiting respective Assets Account and creating the income as declared at the time of survey proceedings, the AO was not correct in observing in the assessment order that the assessee had not submitted any evidence in support of its claim that source of income was earning from hospital activities. Ld. AR has further contended that in the absence of any evidence to the contrary by the Department, the entries in the books account recorded by the assessee could not be ignored. Another submission put forth by the ld. AR is that even though in the return of income the assessee had, shown the income declared, under the head ''Income from other Sources'' instead of offering the same under correct head ''Income from Business or Profession'', it cannot be said that income so offered for taxation was covered under the provisions of Section 69, 69A an....
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....ew that the statement recorded u/s 133A of the Act would not automatically bind the assessee. In this regard, reliance was placed on the decision in CIT vs Khader Khan Son [2008] 300 ITR 157 (Mad.). 16. The question involved here is as to whether all the 3 amounts suffered by the partner of the firm during survey and disclosed as regular income, and subsequently disclosed in the books of accounts as covered by the head "business income' or same were covered by the head 'income from other sources' as subsequently shown by the firm in the ITR and as also claimed by the department, for the purposes of rate of tax? 17. Survey was conducted on 6.2.2019. Statement of Dr. Rajesh Malav was recorded under section 133A on the same date i.e. 6.2.2019. 18. On going through the statement of Dr. Rajesh Malav, a partner of the assessee firm, it is found that in reply to Q.No.9,10 and 11, he offered all the above referred to 3 amounts of income explaining that the same were part of regular income of the assessee firm. This fact has not been controverted by the department at any stage. 19. Learned AR for the Appellant admits that while filing return of income on 10.9.2019, the appellant....