9911796707
TMI Blog2023 (12) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... . 144 of the Income Tax Act, 1961 [the Act] for the AY: 2017-18. 2. Brief facts of the case are that the assessee has filed Form-1 under Income Declaration Scheme, 2016 before the Ld. Pr. CIT-2, Visakhapatnam on 28/09/2016 by disclosing an amount of Rs. 50,59,580/- in the form of cash for the AY 2015-16. However, the assessee failed to pay the taxes payable as per the provisions of the Income Declaration Scheme, 2016 [IDS]. The Ld. AO invoked the provisions of section 197(b) of the IDS, 2016 and concluded that the income declared shall be treated as income of the assessee in the year of declaration and brought the amount of Rs. 50,59,580/- to tax U/s. 68 r.w.s 115BBE of the Act. However, the Ld. AO also issued a show cause notice dated 2/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E of the Act and levying tax at higher rate of 60%. 5. The Ld. CIT(A) is not justified in upholding the levy of interest of Rs. 7,73,888/- U/s. 234A, Rs. 8,51,277/- U/s. 234B and Rs. 1,44,614/- U/s. 234C of the Act. 6. Any other grounds may be urged at the time of hearing." 3. The only issue contested by the assessee is with respect to treatment of the capital gains as undisclosed U/s. 68 r.w.s 115BBE of the Act and levying a higher tax rate of 60%. The assessee also raised the ground regarding the levy of interest U/s. 234A, B and C of the Act. 4. With respect to the first issue, the Ld. AR submitted that the assessee has filed a declaration under IDS-2016 on 28/09/2016 and in Annexure to Form-1 "Statement of undisclosed income" t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 with respect to character of income assessable in the previous year in which such declaration was made under the Income Tax Act, 1961. Further, in response to the show cause notice dated 2/12/2019, the assessee has submitted its reply stating that it was the capital gains which was declared under the IDS, 2016 after availing the deduction U/s. 54F of the Act. These facts were not disputed by the Ld. Revenue Authorities. However, we find that the Ld. AO while framing the assessment has stated the same as undisclosed income U/s. 68 r.w.s 115BBE of the Act instead of taxing the same under capital gains. Merely because the assessee failed to discharge the tax liability under IDS-2016 as declared cannot change the character of the income u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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