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TMI Blog2023 (9) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness income to non-business income. The revenue was not able to submit any evidence during assessment and appeal proceeding that the said income is not connected with the business income of the assessee or accumulated from non-recognising source. Hence, when all the incomes earned by the assessee are only from the business income of the assessee, there do not arise any question as to application of provisions of section 69A and hence taxing such income at special rate as per section 115BBE is improper. It is a settled principle in law that when there is no other/separate source of income identified during the course of survey or during the course of assessment proceedings, any income arising to the assessee shall be treated to be out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 12,50,321/- as Income from undisclosed sources and treating it as unexplained money under section 69A of the Income Tax Act and charge tax as per provisions of Section 115BBE of Income Tax Act, 1961 without appreciating that this amount was duly shown as income under the head 'Income from Business or Profession' in the return of income and this amount was disclosed as business income during survey under section 133A of Income Tax Act, 1961, which represented the sales made on the slips. 2.1 That the Ld. CIT(A) sustained the above addition while himself holding that the documents (slips) seized during survey under section 133A of Income Tax Act at the business premises of the assessee are related to the normal working of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs Short cash 1,83,000/- Short stock 12,94,000/- Other discrepancies 14,23,000/- Total 29,00,000/- 4.1 The ld. AR in argument submitted that the entire amount was declared in the return filed u/s 139(1) and paid the tax in normal rate and treated the income as business income. The ld. AR relied on the order of Sh. Harish Sharma vs. ITO in ITA No. 327/Chd/2020, date of order 11/05/2021 wherein it has been held that: 9. Further, section 68 of the Act, applies where any sum is found credited in the books of account maintained by the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ully reliance is also placed on the following judgments: Hon ble ITAT-Chandigarh Bench in the case of M/s. Sham Jewellers in ITA No. 375/CHD/2022 , date of order-22/08/2022 wherein, it has been held as under: Ground Nos. 8 El 9 challenge the action of the lower authorities in applying the provisions of section 115BBE and thereby charging tax at the rate of 60%. The main thrust of the arguments of the Ld. AR has been that all the additions made or sustained relate only to the business income of the assessee and that nowhere in the assessment order has it been alleged that some other source of income had been detected which gave rise to additional income. It is seen that during the course of assessment proceedings, the various expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accumulated from non-recognising source. Hence, when all the incomes earned by the assessee are only from the business income of the assessee, there do not arise any question as to application of provisions of section 69A of the Act and hence taxing such income at special rate as per section 115BBE is improper. It is a settled principle in law that when there is no other/separate source of income identified during the course of survey or during the course of assessment proceedings, any income arising to the assessee shall be treated to be out of the normal business of the assessee only. During survey proceeding the assessee filed surrendered letter dated 27.02.2019 and in statement assessee also recorded and income was surrendered. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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