INCOME TAX ACT, 1961

Section 115BBE Section 115BAE

Search and seizure - Assessment under section 153A - Assessee surrendered income of Rs. 3 crores in statement recorded under section 132(4) - AO considered only income of Rs. 2 crore earned from Real Estate Business and added Rs. 1 crore separately under section 69

Assessee surrenderd income of Rs. 3 Crores in statement recorded under section 132(4) based on entries in pocket diary found and seized during search in which certain transactions relating to estate business were noted and profit as well as commission was earned thereon. However, AO considered only income of Rs. 2 Crore earned from Real Estate Business and added Rs. 1 Crore separately under section 69 and charged the same to tax @ 60% under section 115BBE . Held: Provisions of section 115BBE(1)(a) are applicable to income referred to in sections 68, 69, 69A, 69B, 69C or 69D reflected in return of income furnished under section 139. In the instant case no such income was reflected in return filed under section 139 rather income was declared in return filed under section 153A after search. Therefore, AO was not justified in taxing income of Rs.1 Crore separately, particularly when nothing was brought on record to substantiate that assessee had made separate investment different from income earned on real estate transactions recorded in pocket diary found and seized during search. Accordingly, AO was directed to tax entire surrendered income at the normal rate of tax.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2017-18

Income Tax Act, 1961

Section 251(1)

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