| Question And Answer | |
|---|---|
| Subject: | Section 115BBE-Income Tax |
| Category: | Income-Tax |
| Querist: | CA Arun Kumar Arora |
| Answered by: | Research Team |
| Tags: | rate of tax, Section 115BBE, Survey surrender of income |
| Date: | November 22, 2021 |
In respect of Excess Stock and Excess Cash Found during the course of Survey,Assessing Officer has invoked Section 115BBE.Whereas, Assessee has offered these Amounts for taxation under theHead-Business Income and paid the the Tax under normal provisions.Whether Assessing officer is right.
In Pawan Kumar (HUF) v. ITO (2020) 190 DTR 366 /205 TTJ 810 (SMC) (Jodhpur)(Trib.) the Tribunal held that the provisions of section 115BBE of the Act were not applicable if the surrender was made on account of excess stock found during the course of survey. The Tribunal referred the decision in Shri Lovish Singhal, Sriganganagar v. ITO (ITA No. 142 to 146 /Jodh /2018 dt 25-5-2018. Also refer Kanpur Organics Pvt Ltd v .DCIT the Tribunal held that part of unrecorded sales were offered as income it was held that assessable as business income and eligible deduction u/s 80JJA of the Act and not assessable u/s 69A of the Act . However in Rajesh Kumar Bajaj v. ACIT (2020) 78 ITR 79 (SN) (Indore)(Trib.) held that where the source of excess cash, excess stock and unaccounted receivables not explained it was taxable at 60 per. Cent. The tax consultant may be able to guide properly after reading the statement given in the course of survey .