| Question And Answer | |
|---|---|
| Subject: | Papers about On Money on sale of Land U/Sec. 133A of the Act 1961 |
| Category: | Income-Tax |
| Querist: | Sethiya manoj |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | on money, rate of tax, survey |
| Date: | May 14, 2022 |
Assessee is trader of land During the course of survey U/Sec. 133A some sale deed along with note about acceptance of cash consideration is mention. Assessee accept that it is for the sale of land . Simillarly these are notings found for purchase of land also . Whether unrecorded sale consideration it will be taxed as normal business income as assessee has offer the explanation and also given the source of the same. Or it will be taxed under Sec. 115BBE.
Whether assessee can Take stand that only income or application which is higher to be taxed ? Pl guide .
The Hon’ble ITAT Gauhati Bench in the case of Shri Abdul Hannan v. ITO ITA 46/Gau/2019 dated July 17, 2020 held that where the assessing officer has applied his mind and treated the undisclosed amount in bank account as undisclosed business receipt or turnover of the assessee, therefore provisions of section 115BBE of the Act does not apply to the assessee.
The assessee would have to demonstrate that the said money is an unrecorded sale.
The Hon’ble ITAT Lucknow Bench in the case of Kanpur Organics Pvt. Ltd. v. Dy. CIT (2020) 78 ITR 120 (Luck) (Trib)/ ITA 675/LKW/2018 dated January 10, 2020 where the Tribunal held that the addition under section 69A of the Act could have been made only if no explanation regarding the source of such income was offered or the explanation offered by the assessee was not satisfactory in the opinion of the Assessing Officer. The assessee had given a complete explanation regarding the source of entries recorded in the diary, which were explained to be part of unrecorded sales and the Assessing Officer also did not object to the explanation. Therefore, the addition could not be made under section 69A and if the addition could not be made under section 69A of the Act, the provisions of section 115BBE would not be applicable.