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2020 (7) TMI 240 - AT - Income TaxComputing the Income surrendered in Survey proceedings - applying the provisions of section 115BBE(1) - taxing the Income declared at the maximum rate - as submitted that the alleged surrendered income is in the nature of business income duly offered to tax and the assessee do not have any other source of income except business income liable to normal rate of tax - HELD THAT:- Alleged surrendered income is the cumulative total of unrecorded and undisclosed income for preceding years which were not offered to tax during the year when they were earned. Before the insertion of Provision of Section 115BBE of the Act w.e.f. 1.4.2013 during the course of survey u/s 133A of the Act if any excess cash or excess stock was found and then the assessee was subjected to tax on the normal rate of tax applicable for the year in which the survey proceedings were carried out. No mechanism to make the distinction between the genuine assessee who regularly offers his correct income to tax on year to year basis and the assessee who conceals the income in the preceding years and only in case if he is subjected to survey action then he offers undisclosed income of excess cash or excess stock during the year when the survey takes place and offers it to tax. Section 115BBE of the Act was inserted w.e.f. 1.4.2013 indicating that only if the income falls u/s 68 to 69D as discussed above which does not necessarily be income of business but can be from any head of income i.e. the income defined in Section 2(24) of the Act for which the assessee is unable to offer any explanation, then such higher rate of tax i.e. 60% is to be levied u/s 115BBE of the Act. In the present case though the alleged surrendered income is a business income but since assessee being individual having no limitation of earning income from sources other than for the objects of the business and also the assessee having not offered any explanation in the statement given during the course of survey which stands unrebutted, therefore the alleged unexplained/undisclosed income is liable to be taxed as income falling under Section 68 to 69D of the Act as applicable to the type of income and has been rightly taxed by Ld. A.O applying the higher rate of tax provided in Section 115BBE of the Act. We therefore confirm the findings of Ld. CIT(A).- Decided against assessee.
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