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2023 (7) TMI 612 - AT - Income TaxExcess cash found - unexplained source of cash - Unrecorded professional receipts - appellant had shown the income offered during the course of survey operation in the return of income - HELD THAT - As appellant clearly stated that he is willing to offer a sum on account of unrecorded professional receipts and the same was offered to tax. Even the excess cash found can be telescoped against the unrecorded receipts. Therefore, it cannot be said that the source for the excess cash was not explained, as the source is clearly explained to be regular business professional receipts. Income can be brought to tax under the head business income not under the head other sources . The ratio in the case of CIT vs. Bajargan Traders 2017 (11) TMI 388 - RAJASTHAN HIGH COURT is clearly applicable to the facts of the present case. Decision of case of M/s. SVS Oils Mills 2019 (5) TMI 1392 - MADRAS HIGH COURT and Kim Pharma Pvt. Ltd. 2013 (1) TMI 495 - PUNJAB AND HARYANA HIGH COURT have no application to the facts of the present case. We direct the AO not to tax the excess cash found under the provisions of section 115BBE - Decided in favour of assessee.
Issues involved:
The appeal against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2019-20. Summary: The appellant, engaged in the medical profession, filed an appeal against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2019-20. The appellant had declared income during a survey operation, including excess cash and unrecorded receipts. The Assessing Officer taxed the excess cash under section 115BBE of the Income Tax Act, 1961. The appellant contended that the excess cash was explained by regular business professional receipts. The Tribunal held that the income should be taxed under the head "business income" and not "other sources" based on the explanation provided. Citing relevant court decisions, the Tribunal directed the Assessing Officer not to tax the excess cash under section 115BBE. Consequently, the grounds of appeal filed by the assessee were allowed, and the appeal was granted in favor of the assessee. The judgment was pronounced on July 12, 2023.
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