Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 956 - AT - Income TaxUnexplained cash found during the search action - assessee has submitted that neither any incriminating material nor any unexplained expenditure was found during the search action in respect sum surrendered by the assessee company - HELD THAT:- A separate surrender of ₹ 97.11 lacs has been made by Shri SB Bajaj Director of the assessee company on account of unexplained cash found during the search action. However, so far as the surrender of ₹ 15 lac to cover any discrepancy is concerned, the AO has not pointed out any unexplained credit in the books of account, any unexplained investment, any unexplained money, bullion or jewellery, any unexplained expenditure or any amount of loan repaid in the assessment order in this respect. Therefore, the provisions of Section 68, 69, 69A, 69B, 69C and 69D are not attracted on the surrendered . The said amount of ₹ 15 lacs was offered in case any discrepancy is found in the books of account. However, in actual neither any unexplained investment nor any unexplained expenditure or otherwise any unexplained asset was found during the search action so far as the aforesaid surrender of ₹ 15 lacs was concerned. In these circumstances, the aforesaid surrender of ₹ 15 lacs can be said to have been offered to cover up the discrepancies in respect of likely disallowances of claims, if any, relating to its business income. Since the aforesaid surrender is not covered under the provisions of Section 68, 69, 69A, 69B, 69C and 69D, the provisions of Section 115BBE are not attracted in this case. The action of the lower authorities in invoking provisions of Section 115BBE on the surrender income is set aside and the AO is directed to compute the said surrendered income under normal provisions as applicable to the business income of the assessee. Appeal of the assessee stands allowed.
|