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2020 (12) TMI 1382 - ITAT JODHPURCategorization of income Surrendered during survey - Excess cash surrendered at the time of survey outside the business income - Addition u/s 115BBE - assessee argued that cash discrepancies are business receipts - HELD THAT:- Upon due consideration, we find that the surrender was made by the assessee during survey proceedings at business premises. During the survey action, discrepancies in stock as well as cash were found by the authorities and to make up the same the assessee made a surrender of the same and duly declared the same in his return of income. It is to be noted that the cash discrepancies were found at the business premises. The assessee does not have any other source of income. Therefore, the cash discrepancies would be nothing but the business receipts for the assessee. It could not be said that the said income arose from undisclosed sources since the source of the same was to be accepted as business receipts and nothing else. CIT(A), in our considered opinion, was not correct in upholding the action of Ld. AO in taxing the same as per Section 115BBE. We hold that the said receipts would constitute business income to be taxed as per slab rates. Assessee appeal allowed.
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