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TMI Blog2023 (2) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment was placed by the ld. DR against the submission of assessee. We fully rely on the orders of Ragavs Diagnostic Research Centre Pvt. Ltd. [ 2022 (9) TMI 584 - ITAT BANGALORE] . Accordingly, the application of 69B on the assessee is not warranted. So, the tax levied by the revenue on the assessee u/s. 115BBE is liable to be rejected. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 021 filed this appeal for the redressal of the grievances voiced in the grounds of appeal. The precise and relevant facts for appreciation of the grievances of the assessee are mentioned hereunder:- 3.1 The assessee is an individual assessee and is engaged in the business of retail sale of jewellary and silver articles under the name and style Vasudev Jewellars and Bros. The assessee for the impugned assessment year 2018-19 filed her return of income declaring a total income of Rs. 3,79,170/- on 23/07/2018. The return of income filed was processed u/s. 143[1] of the Act. 3.2 The case of the assessee was selected for scrutiny manually by ITO Ward I Koppal and later it was assigned to DCIT central circle Bellary by Pr. CIT Hubli vide his order dated 01/02/2021 and statutory notices were issued. The learned assessing officer called for various details and information which were filed by the assessee from time to time to the satisfaction of the learned assessing officer. 3.3 The learned assessing officer concluded the assessment vide assessment order under Section 143[3] of the Act dated 01/03/2021 determining the total income at Rs. 3,79,170/-. The breakup of the assessed income is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.' [3] From the reading of the section it is clear that section 69A requires the following two conditions to be fulfilled: [a]There should be money, bullion, jewellery or other valuable article which are not recorded in the Books of Account, if any, maintained by the assessee for any source of income; and [b]The Assessee offers no or satisfactory explanation about the nature and source of acquisition of the said money, bullion, jewellery or other valuable article. [4] The assessee further submitted that she has satisfactorily explained about the nature and source of the acquisition of the said stock. It is also relevant to note that the provision contains the language 'may' be deemed to be the income of the assessee and not the word 'shall'. Thus, the invoking of section 69A of the Act is not applicable. [5] The assessee relied on the decisions of the Supreme Court, High Courts and Tribunals which were squarely rejected by learned A.O. [6] In view of the above the assessee prayed that the assessment made by the learned assessing officer amounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction exercised at his discretion, but a subjective satisfaction based on the facts of the case. It would then mean that justification for exercise of the power has to be found by the authority by making a subjective satisfaction on the basis of objective material and such satisfaction must be reflected in the reasons recorded in writing while exercising the power. (Vide: Dee Vee Projects Ltd. v/s. Union of India & Ors., Writ Petition No.2 693/2021, dated 11.02.2022 (Bombay High Court)). In the present case, the assessee is in the business of running a diagnostic centre and the only source of income is the receipts from patients which is stated to be the source for unexplained expenditure. That being the case the AO has not brought any contrary material on record to state that the source for the expenditure was other than from business income and has formed the opinion based on conjectures and surmises. While exercising the quasi-judicial functions, the administrative authorities have to reach satisfaction on the basis of material available and not on conjectures and surmises. The test of reasonableness has to be satisfied which in our view failed in the case under consideration. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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