TaxTMI 
TaxTMI 
2025 (4) TMI 2099
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....ent u/s 148 and the addition as made by the Assessing Officer. 2. That the Ld. CIT(A) has failed to appreciate that the assessment, as framed by the Assessing Officer deserves to be quashed as no notice u/s 143(2) have been issued on the basis of original return filed by the assessee and, thus, the reopening u/s 148 is bad in law. 3. Notwithstanding the above said ground of appeal, the Ld. CIT(A) has erred in treating the amount of Rs. 25 lacs as offered during survey u/s 69B r.w. section 115BBE, which is against the facts and circumstances of the case. 4. That the Ld. CIT(A) has failed to appreciate that no other activity other than the same business as per return of income was being carried on by the assessee an....
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....lacs during survey was to be taxed as per provisions of section 115BBE. In response to notice 148, the return was filed by the assessee at the same figure and various questionnaires were issued by the department. Replies were submitted by the assessee. The assessee was also asked by the Assessing Officer as to why the surrendered amount should not be taxed u/s 69B of the Act. It was replied by the assessee that the surrendered amount was from the same business and it should be taxed at the normal tax rate. But, the Assessing Officer treated the sum of Rs. 25 lacs as surrendered during survey as deemed income u/s 69 read with the provisions of section 115BBE of the Act. 3.3 Against the order of the AO, the assessee went in appeal before t....
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....er Book. Similarly, certain other questions regarding the nature of business activity was also asked for, which he replied. It was further stated that during the course of survey, the assessee was found to be carrying on the business of job of dyeing of fabric and trading and no other activity was noticed and, thus, the income so offered was also from the same business. Thus, the CIT(A) has erred in treating the same as deemed income and taxing the same as per the provisions of section 115BBBE of the Act. 5.2 Our attention was also drawn to the amount of Rs. 25 lacs, which was offered in the audited profit and loss account as is evident from page 21 read with page 23 of the audited profit and loss account and its annexure and it was, thu....
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.... - Further, only statement of one of partners of assessee firm without any corroborative evidence could not come to aid of Assessing officer for purposes of invoking deeming provisions of section 69B - Even taking into consideration said statement on a standalone basis, it was found that source of investment had been stated to be out of business income and that surrendered amount had been duly honored by assessee while filing return of income wherein said amount was offered to tax under head "business income" Whether, on facts, provisions of section 69B read with section 115BBE could not be invoked in instant case - Held, yes [Paras 8, 10 and 11] [In favour of assessee]" Thus, it was argued that the surrendered income be taxed at the nor....
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....lained the nature of business of the assessee. As no other activity was noticed either during the course of survey or during the course of assessment proceedings by the department. We find that all the judgments as cited by the Ld.CIT(A) have been considered by the Chandigarh Bench of the ITAT in the case of M/s Khurana Rolling Mills Pvt. Ltd. and M/s Bindas Foods Pvt. Ltd. as quoted 'supra'. Under similar facts and circumstances, the amount surrendered was spent on the factory building in the case of M/s DDK Spinning Mills as cited above. We find that issue is also squarely covered by the judgment of Sh. Gandhi Ram in ITA. 121/Chd/2021. Further reliance on the other judgments as cited by the Ld. Counsel of the assessee are also ....