9911796707
TMI Blog2024 (3) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 154 of the Income Tax Act, by ACIT, Circle-1, Bikaner. 2. In this appeal, the assessee has raised following grounds: - "1. The learned CIT(A) Jaipur was wrong in law as well in fact by confirming the order passed by AO u/s. 154 of IT Act and calculating the income u/s. 115BBE of IT Act. 2. No reasonable opportunity was provided to the assessee while confirming the order passed by AO u/s. 154 of the IT Act. 3. Interest charged u/s. 234B and 234C was wrongly confirmed by the CIT(A). 4. The assessee reserves the right to add, alter or amend any ground of appeal as and when the need arises u/s. 250 of IT Act." 3. Succinctly, the fact as culled out from the records is that on 15.10.2013 a survey u/s. 133A of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961. The return for A.Y. 2014-15 was processed u/s. 143(1) taxing the surrendered amount of Rs. 40,00,000/- as per normal tax calculation availing the benefit of progressive slab wise taxation. However, as per the facts apparent from record, this amount should have been taxed as per section 115BBE. This omission has resulted into short levy of tax and therefore, the same was rectified as per provision of section 154 (1)(b) of the Act. 4. Aggrieved from the order of AO, the assessee preferred an appeal before the ld. CIT(A). Apropos to the grounds so raised the relevant finding of the ld. CIT(A) is reiterated here in below: "6. It is crystal clear from the above chart that the appellant has been given a number of opportuniti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate proceedings, the appellant has not brought anything on record to show how the income surrendered is a business income. In view of these facts and circumstances of the case, I do not find any infirmity in the order of AO and accordingly the charging of the said surrendered income by invoking the provisions of section 115BBE of the Act is upheld and the Ground of Appeal is dismissed. 8. In the result, the appeal of the appellant is dismissed." 5. The ld. AR of the assessee vehemently argued that without bringing any finding that the income accepted by the assessee is within the meaning of section 69 of the Act there is no mistake which is apparent of record and therefore, the order passed is bad in law and the ld. AO has not power to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The assessee has surrendered the income under the head of Business Income as noted above. Consequent to the survey there is no assessment and accordingly there is no adjustment to the returned income. Subsequently a rectification notice u/s. 154 of the Act was issued to the assessee on 10.03.2017 proposing to tax the said income of Rs. 40 lac as undisclosed income and charge the tax as per provision of section 115BBE of the Act. The ld. AO noted that the the assessee has not provided any explanation regarding the investments made by it or income earned from the sale of such undisclosed investment. Therefore, the provision of section 69 of the Income Tax Act, made applicable as the assessee has not provided any explanation regarding the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any connect regarding how its business income has been utilized to invest in the said land or make any expenditure regarding the same. Therefore, this investment is clearly unexplained as per section 69 of the Act. The undisclosed income on account of this unexplained investment is required to be considered for taxation as per the provisions of section 115BBE of the Act. 8. The bench noted that the assessee has disclosed a sum of Rs. 40,00,000/- as income of the year under consideration by stating as under : Thus, it is evident that the assessee has disclosed the discrepancies as income and not any asset or income allegedly undisclosed. Therefore, it is the income on account of error or omission on the part of the assessee during the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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