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2023 (8) TMI 1062 - ITAT CHANDIGARHIncome surrendered in survey action - undisclosed professional income - building expenses and other unaccounted income - CIT(A) treating the Surrendered Business Income under the head Building as Deemed Income u/s 69 - AO invoked the provisions of Section 115BBE and taxe the said income @ 60% - AO also separately added an amount on account of addition in the value of building - CIT(A) confirmed the addition so made by the AO - HELD THAT:- As surrender has been made just on estimation basis that the assessee might have received from professional receipts which might not have been accounted for. Central Board of Direct Taxes has also issued instructions that the Income Tax Authorities at the time of survey/search action should not harp upon taking surrender/confession statements, rather they should collect the evidences relevant to unaccounted/unexplained income and that the additions should not be based merely on by obtaining surrender statements. Surrender statement has been obtained and there is no evidence nor any allegation of the Survey Party that the assessee had income from any other source. In fact, no such income has been found during the survey action. However, the assessee to keep his promise, has offered for taxation the surrendered additional professional income of Rs. 30 lacs. Action of the AO in assessing the aforesaid surrendered income as income from unexplained sources u/s 69 cannot be held to be justified. Therefore, the said surrendered income has been rightly offered by the assessee his business/professional income. The invocation of Section 115BBE is also held not applicable in this case. Separate addition on account of addition in the value of building - Addition made by the AO on account of addition in the value of building cannot also be held to be justified as the assessee in clear terms has surrendered the additional professional income covering the expenditure incurred on building also - Decided in favour of assessee.
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