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2018 (5) TMI 1646 - AT - Income TaxSurrender of income during survey - to be treated as Business income or taxable u/s 69 - AO made the additions u/s 69 while calculating the tax rate as per provisions of Section 115BBE - Held that:- As per decision in the case of Bajrang Traders [2017 (11) TMI 388 - RAJASTHAN HIGH COURT] as observed that the Hon'ble High Court in respect of excess stock found during the course of survey and surrender made thereof was found to be taxable under the head ‘business and profession’. Similarly in respect of excess cash found out of sale of goods in which the assessee was dealing was also found to be taxable as business income. Applying the proposition of law laid down in the judicial pronouncements as discussed above, I hold that the lower authorities were not justified in taxing the surrender made on account of excess stock and excess cash found U/s 69. Thus, there is no justification for taxing such income U/s 115BBE of the Act. So far as the surrender of income is on account of incriminating documents, it is not clear as to whether it was out of the business transaction, the assessee was carrying on in the regular course of business. However, authorities had not given any finding on the nature of such incriminating documents nor with regard to income surrender with respect to these documents. Restore the issue with regard to surrender of income arising out of incriminating documents to the file of the Assessing Officer to find out the nature of such income if arising out of the business transaction carried on by the assessee and to decide the issue afresh as per law..
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