2026 (8) TMI 1173

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....assessee has raised various grounds in the memorandum of appeal, the principal grievance pressed before us relates to the application of the enhanced rate of tax under section 115BBE to the income surrendered during the course of survey. The assessee has also challenged the addition of Rs.2,00,000/- representing cash deposited in the bank account, whereas the ground relating to the addition of Rs.50,043/- has not been pressed before us. 2. The relevant facts, in brief, are that a survey action under section 133A was carried out in the case of the assessee on 23.09.2016, during the course of which excess cash of Rs.2,83,266/- and certain investment in gold amounting to Rs.9,79,432/- were found. The assessee, in his statement recorded duri....

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....ospective and effective from 01.04.2017. It has further been held that, for Financial Year 2016-17, the law as it stood on 01.04.2016, prescribing the rate of 30%, would govern and that the enhanced rate of 60% could apply only from Financial Year 2017-18 onwards. The Hon'ble High Court has also specifically noticed that the Taxation Laws (Second Amendment) Act, 2016 contains no express language giving retrospective operation to the amended section 115BBE. 5. The Hon'ble High Court has reached the aforesaid conclusion following, inter alia, the principle enunciated by the Hon'ble Supreme Court in Karimtharuvi Tea Estate Ltd. v. State of Kerala (1966) 60 ITR 262 (SC) that, ordinarily, the law applicable to an assessment is the law in forc....

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....'s bank account on 28.11.2016. The learned counsel submitted that the assessee had already surrendered cash of Rs.2,83,266/- found during the course of survey and there was further cash balance of Rs.44,734/- available with him. Therefore, the subsequent cash deposit of Rs.2,00,000/- ought not to have been treated as an independent unexplained amount without allowing the benefit of the cash already surrendered/available with the assessee. The limited prayer before us is, therefore, for grant of telescoping/set-off against the surrendered cash. 8. Considering the aforesaid facts, we find that the plea of telescoping requires examination with reference to the availability and utilization of the surrendered cash and whether there was any in....