9911796707
TMI Blog2024 (7) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... BBE of the Act to the normal rate of tax as the income was surrendered during the course of search proceedings - HELD THAT:- As assessee submitted that AO has made addition based on the statement given during the search proceedings u/s 132(4) of IT Act. Shri Sachin Arora in response to question no 21 of the said statement has stated that he offers an additional income under HPS Concerete Pvt. Ltd i.e assessee to meet out possible leakage of revenues and to cover up all the long pending liabilities and expenditure. AO could not bring any evidence on record from which it may be concluded that this income may be categorized as deemed income , as per the provisions of sections 68 to 69D of the IT Act since the essential conditions of these sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment Learned AO made addition of Rs. 1,80,00,00/- being the amounts surrendered by Shri Sachin Arora on behalf of the assessee. 3. Assessee preferred appeal before the Learned CIT(A) which was allowed vide order dated 4.8.2021. 4. Being aggrieved the Department of Revenue preferred present appeal. 5. Learned representative for Department submitted that Learned CIT(A) erred in changing the rate of interest from section 115BBE of the Act to the normal rate of tax as the income was surrendered during the course of search proceedings. 6. Learned representative for the Department submitted that Learned CIT(A) erred in holding that undisclosed income of the assessee is income of the assessee u/s 41(1) of the Act and accordingly allowed set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the AO has invoked the provisions of Section 115BBE of the Act with reference to Section 68 of the Act by stating that the assessee firm has shown its undisclosed fund as sundry creditors which the assessee firm has earned through its undisclosed sources and hence the provisions of section 115BBE of the Act are applicable. However, this finding is not as per law since the Sundry Creditors of preceding years cannot be considered as unexplained credit coming in the current year. From the plain reading of Section 68 of the Income Tax Act, it is evident that the provisions of Section 68 of the Act are invoked when any Sum is found credited in the books of an assessee maintained for the previous year . Thus, it is mandatory that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resumed that the transactions recorded in the seized documents do not have any different character than that reflected on the seized paper and that is income of the assessee. 14. We are of the considered view that the assessee has clearly explained the source of profit earned by him and as the source of income is identifiable, deeming provisions of section 69 cannot be applied. 12. From examination of record in light of aforesaid rival submissions it is crystal clear that Learned representative for assessee submitted that Learned AO has made addition based on the statement given by Shri Sachin Arora S/O Late Shri Satish Arora during the search proceedings at D-988. New Friends Colony, New Delhi on 03/04.11.2016 u/s 132(4) of IT Act. Shri Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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