TMI Blog2023 (10) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... out of business income or out of undisclosed sources. The learned Pr. CIT has not given a clear finding about which provision of law the AO ought to have charged the tax which he failed to do so. CIT has stated that the AO should have considered the surrendered income as income u/s 68/69/69A/69B/69C of the Act. Therefore, in the absence of clear finding by the learned Pr. CIT as to under which provision of law the amount was required to be taxed so as to attract the provisions of section 115BBE by mentioning the multiple provisions does not serve the purpose of law. There has to be clear cut finding by the learned Pr. CIT. As no clear finding has been given by learned Pr. CIT as to under which provision of law the amount surrendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53 CCH 250 Jodh Trib. ACIT Vs. One Enclave (2019) 56CCH 326 Indore Trib. 2. Facts, in brief, are that in this case a survey operation was carried out at the business premises of the assessee on 17.08.2016. During the course of survey the assessee declared additional income of Rs. 30,00,000/-. Thereafter the case was taken up for scrutiny and the assessment was framed u/s 143(3) of the Act vide order dated 16.12.2019. Thereby the Assessing Officer assessed income at Rs. 35,25,470/-. The learned Pr. CIT after examining the records issued a notice u/s 263 of the Act for revising the assessment order dated 16.12.2019. The basis for issuance of notice u/s 263 of the Act was that the tax was required to be paid on the surrendered inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of which the assessee declared an additional income of Rs.30,00,000/- during the year under consideration. The assessee has duly reflected the amount of additional income declared in his Income Tax Return for the year under assessment and has paid due tax on this amount. 4. However, the learned Pr. CIT was not satisfied with this finding of the AO and revised the order by observing as under: 6.1 However, while filing the return of income the assessee had disclosed this amount as Income from Business Profession for the A.Y. 2017-18 and had paid taxes as per normal slab rates. It is relevant to mention here that the surrendered income was in the nature of unexplained cash recoveries and the same was liable to be added u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks as such section 69A was not applicable against the assessee. 6.3 I have considered the reply of the assessee and find the same as devoid of merits. There is no doubt that the surrender income represented the undisclosed income of the assessee which would have never come to light had there been no survey action upon the assessee u/s 133Aof the Act. Therefore, this undisclosed income could be treated as normal business income as contended by the assessee. The Ld. Counsel of the assessee has also contended that he was not required to maintain account books as per Section-69A of the act was not applicable against the assessee. However, as the applicability of Sections-68/69/69A/69B/69C of the Income Tax Act, 1961 are not dependent upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee surrendered an amount of Rs. 30,00,000/- over and above his regular income in the year under appeal. The voluntary surrender was not subject to any penal action under any direct tax laws. Thus, it is not clear as to what was the nature of this surrendered amount, whether it was out of business income or out of undisclosed sources. The learned Pr. CIT has not given a clear finding about which provision of law the AO ought to have charged the tax which he failed to do so. The learned Pr. CIT has stated that the AO should have considered the surrendered income as income u/s 68/69/69A/69B/69C of the Act. Therefore, in the absence of clear finding by the learned Pr. CIT as to under which provision of law the amount was required to be tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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