TMI Blog2022 (5) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... 69C - Non-Applicability of Sec. 115BBE - whether amended provision of Section 115BBE is liable to be applicable in the present case also or not? - HELD THAT:- The notification speaks about the applicability w.e.f. 01.04.2017 onwards. The present case is the case for the A.Y.2015-16. The expenses having explained and considered by CIT(A) in view of the decision in case of T. A. Quereshi [ 2006 (12) TMI 91 - SUPREME COURT] . We nowhere found any reason to interfere with the finding of the CIT(A) on this issue, therefore, we are of the view that the finding of the CIT(A) in quite correct which is not liable to be interfere with at this appellate stage. Accordingly, this issue is decided in favour of the assessee against the revenue. - I.T.A. No.3341/Mum/2019 - - - Dated:- 28-4-2022 - Shri Amarjit Singh, JM And Shri S. Rifaur Rahman, AM For the Revenue : Shri Bharti Singh (Sr. AR) For the Assessee : Shri Mandar Vaidya ORDER PER AMARJIT SINGH, JM: The revenue has filed the present appeal against the order dated 14.02.2019 passed by the Commissioner of Income Tax (Appeals) -40 Mumbai [hereinafter referred to as the CIT(A) ] relevant to the A.Y.2015-16. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee u/s 68 of the Act. The assessee also claimed the expenditure to the tune of Rs.14,38,512/- which was also found fictitious, therefore, the same was also disallowed and added to the income of the assessee u/s 69C of the Act. The total income of the assessee was assessed to the tune of Rs.5,89,78,990/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) and the CIT(A) allowed the claim of the assessee but the revenue was not satisfied, therefore, filed the present appeal before us. ISSUE Nos.1 2 4. We have heard the arguments advanced by the Ld. Representative of the parties and perused the record. Under these issues the revenue has challenged the allowance of the claim of Rs.5,75,40,478/- from F O trading. Before going further, we deem it necessary to advert the finding of the CIT(A) on record: - I have carefully considered the arguments and submissions filed during the appellate proceedings by the AR of the appellant. Ground No. 1: The first ground of the Appeal is against the applicability of Sec. 68 r.w.s. 115BBE of the Act. The facts of the case are summarized above and relevant arguments mentioned along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, the amount included as undisclosed income under section 68 of the Act should be treated as business income. The _ principles laid down by this court in Daulatram Rawatmull's case 1967 64 ITR 593 will apply to the facts of the case too. In the above case, the court held that the said credits are to be taken as Business Income only. Another citations referred by the AR of the Appellant which is also nearing to the present case is of M/s Rahil Agencies ITA No. 4413/Mum/2014.In this case at Para No. 10, the Hon ble Mumbai Tribunal observed as follows: 10. In view of the above and relying on the decision of various high court and tribunal as cited by ld. AR it is clear that the stock of diamond declared during the. Search is taxable under the heads of income as defined in section 14 read with section 56 and not taxable separately. As there cannot be taxable income of income out of the 5 heads of income as specified in section 14 of the Act. Hence the stock of diamond of Rs.13,47,63,640/-is taxable either under Income from Business Profession or under income from other sources. The Hon ble Mumbai Tribunal in the same case further observed at Para No. 14 as foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said grounds the AR of the Appellant argued that the amended provisions of the Sec. 115BBE are not applicable to the present case. In this regard, | reproduced the text of Sec. 115BBE as follows : 14[Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D. 115BBE. 15{(1) Where the total income of an assessee, (a) includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D and reflected in the return of income furnished under section 139; or (b) determined by the Assessing Officer includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, if such income is not covered under clause (a), the income-tax payable shall be the aggregate of the amount of income-tax calculated on the income referred to in clause (a) and clause (b), at the rate of sixty per cent, and the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause ().] (2) Notwithstanding anything contained in this Act, no deduction in respect of ..... 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