9911796707
TMI Blog2023 (6) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. The Assessing Officer (in short 'the AO') in this case taxed the surrendered business income of the assessee @ 60% as against the normal tax rate applicable on business income. 3. The brief facts of the case are that a survey action was carried out at the premises of the assessee on 23.10.2018. During the course of survey, certain discrepancies were found such as there was excess stock found as compared to the books of account and there were loose slips showing receivables and even excess cash was found. The value of the items was quantified at Rs. 40,05,000/-. The Survey Party confronted the assessee in this respect and recorded the statement of the assessee. The assessee surrendered the aforesaid amount of Rs. 40,05,000/- as his b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s proprietorship concern of the assessee. The Survey Party further pointed out that he was not maintaining Stock Register and further asked the assessee to explain as to how the value of stocks was recorded in the books of account. The assessee in this query replied that the stock was physically verified at the end of the accounting year and the same was recorded in the books of account. Regarding the excess stock found, the assessee replied that it was accumulated over the few months. In respect of loose slips showing receivables, the assessee explained that those loose slips represented the receivables against unaccounted sales. In respect of excess cash found, the assessee further explained that it was on account of unaccounted sales. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he source of the excess stock, receivables and cash which was duly accepted by the Survey Party. 6. Considering the overall facts and circumstances of the case, I am of the view that the aforesaid additional income surrendered by the assessee was not from any other unexplained source and same was out of business proceeds of the assessee. Therefore, I do not find justification on the part of the lower authorities in applying the provisions of Section 115BBE of the Act to the surrendered business income of the assessee. Accordingly, the AO is directed to tax the assessee on the surrendered income at normal rates as applicable to the business income. It is made clear that my above findings are given in view of the peculiar facts of this case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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