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TMI Blog2023 (6) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, however, did not make day-to-day entry in that respect. There were unaccounted sales, the proceeds of which were invested for purchases and there were further sales from those purchases. Therefore, during the survey action, excess stock and receivables on account of unaccounted sales and cash generated on account of unaccounted sales was found. The assessee duly explained the source of the excess stock, receivables and cash which was duly accepted by the Survey Party. Additional income surrendered by the assessee was not from any other unexplained source and same was out of business proceeds of the assessee. Therefore, find no justification on the part of the lower authorities in applying the provisions of Section 115BBE of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in this respect and recorded the statement of the assessee. The assessee surrendered the aforesaid amount of Rs. 40,05,000/- as his business income over and above the normal business income. The assessee, accordingly, booked the said income in his books of account and paid the due taxes as applicable for business income. The AO, however, treated the said surrendered amount as unexplained income of the assessee and invoked the provisions of Section 115BBE and thereby taxed the income at a higher rate of 60%. The ld. CIT(A) confirmed the above action of the AO. 4. The ld. Counsel for the assessee has invited my attention to the surrender letter, copy of which is placed at Paper Book page 1 to show that the assessee had surrendered aforesai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst unaccounted sales. In respect of excess cash found, the assessee further explained that it was on account of unaccounted sales. Further, the Survey Party asked the assessee as to what he has to say about the discrepancies found to which the assessee stated that he has surrendered the excess income as per the Surrender Letter dated 23.10.2018. During the assessment proceedings, the assessee explained that the assessee was doing business at small scale level and also numerous items were dealt during business. That no day-today records were kept by the assessee and that the stock was valued at the end of the year, thus resulting into excess stock and cash out of unaccounted sales. The above factual position explained by the assessee has ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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