In the course of survey excess cash was found. The assessee surrendered the amount and offered as business income while filing the return of income. The income was assessed u/s 143 (3) of the Act and tax was determined at as per slab rate of taxation applicable to individual at 30%. The Assessing Officer issued the notice u/s. 154 of the Act, and passed the order levying the tax at 60% as per section 155BBE of the Act. On appeal CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that since there was no finding in the assessment order that income surrendered is assessable as per section 155BBE of the Act, the order under section 154 is not sustainable. (AY. 2017-18)
Hari Narain Gattani v. Dy. CIT (2021) 199 DTR 121 (Jaipur)(Trib.)
S. 154 : Rectification of mistake-Surrendered income-Survey-Business income-Increasing the rate of tax from 30 percent to 60 percent and levying surcharge and cess on undisclosed income is held to be not valid. [S. 68, 69, 69A, 69B, 69C, 69D, 115BBE, 131, 133A]