In the course of survey due to certain discrepancies, assessee surrendered additional income towards advances found written in a rough diary, unaccounted stock and excess cash in hand. The AO assessed the income as deemed income under section 69A of the Act under section 115BBE of the Act and taxed at @ 60 percent. On appeal the CIT(A) affirmed the order of the AO. On appeal the Tribunal held that the income surrendered cannot be assessed as undisclosed income. Addition is deleted. (AY. 2017-18)
Pramod Singla v. ACIT (2023) 37 NYPTTJ 1107 / (2024) 227 TTJ 438 (Chd) (Trib)
S. 69 :Unexplained investments Undisclosed sources-Survey-Stock-Additional income surrendered during survey-Income surrendered during the course of survey cannot be brought to tax under the deeming provisions of S 69 and 69A of the Act-Assessable as business income-Provision of section 115BBE cannot be applied. [S. 28(i), 69A, 115BBE, 133A]