TaxTMI 
TaxTMI 
2026 (9) TMI 928
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....dgment basis u/s 144 of the Act on 05.11.2019. The only issue that fall for our consideration is to determine applicable rate of tax on survey surrender income. Having heard rival submissions, the appeal is disposed-off as under. 2. The assessee's business premise was subjected to survey u/s 133A on 21.09.2016. To make up for the discrepancies of cash, stock, investment, advances etc., the assessee made surrender of Rs. 75 Lacs in recorded statement, The said surrender was made in the return of income by way of credit to Profit & Loss Account. The assessee offered the additional income and paid taxes @30%. However, Ld. AO, considering the provisions of Sec.115BBE, opined that higher rate of 60% would be applicable on this surrender. Acco....
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....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 as income from other sources. Where there is a clear nexus of physical stock with the stock in which the assessee regularly deals in and recorded in the books of accounts, the discrepancy would clearly be in the nature of business income. N....
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....he 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 Laws (Second Amendment) Act, 2016 is prospective in effect as specified therein (from 15.12.2016 except the amendment of Section 115BBE, which is effective from 01.04.2017). The question framed in para 8.1, in the preceding part, is ans....