INCOME TAX ACT, 1961

Section 115BBE

Taxation under section 115BBE - Business income surrendered during survey - No explanation offered by assessee about source of income -

During the course of survey assessee surrendered excess stock, excess cash and receivable from sundry parties not shown in books aggregation to Rs. 92 lakhs and stated that he was unable to explain the source of these incomes. AO treated alleged undisclosed income as income referred in section 68 to section 69D and charged it with the tax rate of 60% applying section 115BBE. Assessee's case was that income surrendered during survey was purely business income liable to normal rate of tax. Held: Though alleged surrendered income of Rs. 92 lakhs was business income but since assessee being individual having no limitation of earning income from sources other than for the objects of business and also assessee having not offered any explanation in the statement given during survey which stood unrebutted, alleged unexplained/undisclosed income was liable to be taxed as income falling under section 68 to 69D as applicable to the type of income and had been rightly taxed by AO applying the higher rate of tax provided in section 115BBE.

Distinguished:The Asst. CIT, Central Circle-2, Jaipur v. M/s. Sanjay Bairathi Gems Ltd. [ITA No. 157/JP/17 Order, dated 8-8-2017] : 2017 TaxPub(DT) 3858 (Jp-Trib), Chokshi Hiralal Maganlal v. Dy. CIT 2011 TaxPub(DT) 1410 (Ahd-Trib), Lovish Singhal, Shri Vasu Singhal, Pramod Kumar Singhal and Shri Vinod Kumar Singhal v. ITO, Ward-2 and Asstt.CIT Circle-Sriganganagar [ITA No. 142/Jodh/2018 Order, dated 25-5-2018] : 2018 TaxPub(DT) 2944 (Jod-Trib).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2015-16

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