Assessing Officer completed assessment in case of assessee under section 143(3) at assessed income of Rs.41.78 lakhs which included income surrendered pursuant to search of Rs.22.19 lakhs as current year’s business income offered to tax, by charging tax and interest at normal rates and raised nil demand.   Assessing Officer issued notice under section 154 firstly, on ground that tax rate on surrendered income was to be charged as per provision of section 115BBE and secondly, during assessment proceedings, tax rate on surrendered income had been charged at 30 per cent, however, as per amended provisions of section 115BBE, it should have been charged at 60 per cent. Order of Assessing Officer is affirmed by the CIT (A). On appeal the Tribunal held that there was nothing stated in either pre-amended or post-amended provisions of section 115BBE that where assessee surrenders undisclosed income during search action for relevant year, tax rate has to be charged as per provisions of section 115BBE. Further there was no finding that provisions of section 115BBE had been invoked by Assessing Officer during assessment proceedings and tax rate had been charged at rate of 30 per cent on surrendered income under section 115BBE and thus, action of Assessing Officer in rectifying and increasing rate of taxation from 30 per cent to 60 per cent on undisclosed income in view of amended section 115BBE did not come within purview of section 154. Accordingly action of Assessing Officer in invoking jurisdiction under section 154 was not legally tenable.  (AY. 2017-18)