The A.O. assessed the income of the assessee based on the discrepancies noticed during the survey conducted at the premises of the assessee on 23.10.2018. In the statement recorded, the assessee admitted undisclosed income of Rs 40.05 lakhs which was brought to tax by the A.O. by applying income-tax rate @60%. The CIT(A) confirmed the order of the A.O. On further appeal, it was contended before the Tribunal that assessee had booked the said income and paid due taxes as applicable for business income. The survey team noted that the assessee, being small businessman, had not maintained proper books of account and did not doubt about the nature and source of additional income. The A.O. did not rebut it during the assessment proceedins. Considering the facts and circumstances of the case, the Tribunal accepted the contentions of the assessee. The Tribunal held that there was no justification for applying the provisions of section 115BBE of the Act to the surrendered business income of the assessee. [The Tribunal made it clear that its findings were based on the peculiar facts of the case and would not be a binding precedent.] (AY. 2019-20)
Gurdeep Singh Ubhi v.Dy. CIT (2023)104 ITR 79 (SN)(Chd) (Trib)
S. 115BBE : Tax on specified income-Determination of tax in certain cases-Unexplained income-Rate of tax-Assessee did not maintain proper books of account-Excess stock and receivables on account of unaccounted sales and cash generated on account of unaccounted sales was found in survey-Assessee’s explanation accepted by survey party-Additional income surrendered by assessee not from unexplained source but from business proceeds-Under peculiar facts surrendered income to be taxed at normal rate applicable to business income and not at higher rate of sixty per cent: