Tax rates as interim amended section or tax rates
as applicable for the said Assessment year - Revision under section 115BBE
Facts:
Consequent
to a survey assessee agreed with undisclosed cash/income of 40 lakhs which was
assessed at 30% in a scrutiny assessment. PCIT invoked his powers under
section 263 and reopened the assessment citing that the said income should
have been taxed at 60% under section 115BBE and not at 30% thus constitutes as
an order prejudicial to the interests of the revenue. Plea of the assessee were
-
The
income partakes the character of the same tinge from where it emanates thus was
business income and the survey was done before the amendment to section 115BBE
was enacted (the amendment was made in the middle of the year) so the income
ought to be taxed only at 30% and not at 60% under section 115BBE.
On
appeal:
Held
in favour of the assessee that the PCIT's revision lacks characteristics
to be called as an order prejudicial to the interests of the revenue. On this
ground the PCIT revision was cancelled.
The
Rates will be as applicable as on the first day of the assessment year, so the
ad interim amended rates under section 115BBE will still continue to apply
irrespective of the fact that the rates got changed from 30% to 60%. Since the
revision was quashed this did not come to the foreground.
Dissented:
DCIT v. Punjab Retail Pvt. Ltd. [ITA no. 677/Ind/2019 order
dated 08-10-2021] : 2021 TaxPub(DT) 6394 (Ind-Trib)
Distinguished:
CIT v. Vatika Township Private Limited, (2014) 367 ITR 466
(SC) : 2014 TaxPub(DT) 3934 (SC)
Case: Hema Raman v. Pr. CIT 2023 TaxPub(DT) 2549 (Del-Trib)