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2024 (1) TMI 604 - ITAT PANAJIExcess Stock of gold and silver jewellery and Cash found in Survey u/s 133A - deemed income u/s 69-69A or business income - HELD THAT:- When we analyze the facts of the assessee’s case with reference to requirements of Section 69 of the Act, it is observed that admittedly, the investment in the purchase of 5246.335 gms gold and 16.3793 kg Silver is not recorded in the books. The assessee has not offered any satisfactory explanation for the impugned investment. Thus the requirement of Section 69 are fulfilled in this case. Hence, we are of the opinion that the Assessing Officer has rightly invoked section 69 of the Act for the impugned investment in the purchase of 5246.335 gms gold and 16.3793 kg Silver. Therefore, we uphold invocation of section 69 of the Act by AO. Accordingly ground number 2 of the assessee regarding impugned stock is dismissed. Excess cash found during the survey - Assessee has not offered any specific explanation with reference to excess cash found during the survey. Therefore, we are of the opinion that the AO has rightly invoked section 69A. Invokation of provisions of Section 115BBE - Section 115BBE is specifically applicable where income of the assessee includes any income under section 69, 69A of the Act. As per the Income tax Act , once income of assessee includes any income referred in section 69,69A the Tax has to be calculated as per provisions of Section 115BBE. In this case we have already held that section 69 and 69A was rightly invoked by the AO. Therefore, since income of the assessee contains income referred u/s 69, 69A, provisions of Section 115BBE are applicable in the case of the assessee. Sub-clause 2 of Section 115BBE specifically states that no deduction in respect of any expenditure, allowance under any provision of this act in computing income referred under subclause 1 of section 115BBE means income referred u/s 69, 69A of the Act. Therefore, the AO was right in disallowing the assessee’s claim of Partner’s Salary on the impugned unexplained investment taxed u/s 69 and 69A of the Act. Accordingly the ground of appeal number 3 of the assessee is dismissed.
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