2026 (9) TMI 323

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....O] u/s 143(3) of the Act on 20.12.2019. Having heard rival submissions, the appeal is disposed-off as under. 2. The assessee being resident corporate assessee is stated to be engaged in manufacturing of ply and ply board. The business premises of the assessee was subjected to survey on 21.09.2016 wherein the assessee surrendered an amount of Rs. 100 Lacs i.e. Rs. 90.40 Lacs for excess stock & Rs. 9.60 Lacs for excess cash. The said surrender was made in the computation of income. The Ld. AO proposed taxing the same as per higher rates provided u/s 115BBE. The assessee stated that this surrender was made as 'Business Income' and higher rate as per Sec.115BBE was not to be applied for this surrender. However, Ld.AO rejected the argument of....

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....In our considered opinion, the statement is to be accepted as a whole and not in a piecemeal manner. The assessee has surrendered this amount in the statement as 'misc. business income' only and offered the surrender in the computation of income accordingly. Therefore, the assessee's version that it was nothing but business income is to be accepted. Our view find supports from the decision of this Tribunal in the case of A.P. Knit Fab vs. DCIT (ITA No.732/Chd/2022 dated 15.02.2024). The bench, after due consideration of various other decisions, held that when the revenue has not pointed out that the excess stock had any nexus with any other receipts other than the business being carried on by the assessee, the same could not be considered a....

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....lied to assessments for that year. (ii) Changes in law occurring after the commencement of a financial year cannot govern the tax liability for that year unless the amendment is expressly made retrospective. (iii) The amendment to Section 115BBE came into force on 01.04.2017 i.e. the first day of financial year 2017-18. For FY 2016-17, the law in force on 01.04.2016, prescribing a rate of 30%, must govern. The enhanced rate of tax @60% came into force on 01.04.2017 and can apply only from that date, i.e. for financial year 2017-18 onwards. (iv) The Taxation Laws (Second Amendment) Act, 2016 contains no express language for it's retrospective effect of section 115BBE. 18. We thus hold that the Taxation Law....