TMI Blog2022 (9) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the source for unaccounted cash payments is unaccounted cash receipts and that the assessee has not provided the details of patients from whom cash receipts were received - HELD THAT:- When an assessee offers no explanation or the explanation offered is not satisfactory in the opinion of the AO, then the amount of such expenditure is to be taxed as income u/s. 69C of the Act. The satisfaction to be recorded by the AO should not be objective satisfaction exercised at his discretion, but a subjective satisfaction based on the facts of the case. It would then mean that justification for exercise of the power has to be found by the authority by making a subjective satisfaction on the basis of objective material and such satisfact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T MEMBER This appeal by the assessee is against the order of the CIT(Appeals)-11, Bengaluru dated 18.03.22 the assessment year 2018-19. 2. The assessee has raised the following grounds:- 1. The Commissioner of Income Tax (A) erred on facts and the circumstances of the case in dismissing the Appeal filed by the Appellant against the order passed u/s.143(3) of the Income tax Act, wherein amount declared at the time of Search was taxed as separate income u/s.115BBE of Income tax Act. 2. The Appellant submits that as per the regular return of income, there is substantial loss carried forward against which the amount declared at the time of Search as business income should have been adjusted and loss reduced. 3. The learned As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffered and assessed as the business income of the assessee. The residual amount of Rs.53,85,000 pertaining to the AY 2018-19 was erroneously missed to be offered to tax while filing the return of income. 4. The case was selected for scrutiny and during the course of assessment proceedings, the AO noticed that the assessee has missed to include the residual additional income agreed to be offered. The assessee submitted that the Chartered Accountant who was taking care of the tax related affairs of the assessee fell sick due to which the mistake of not including the additional income of Rs.53,85,000 occurred. The assessee filed a revised return before the AO including the additional income thereby reducing the loss returned in the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch proceedings, the additional income was offered from the same source. The ld. AR further submitted in the assessment made u/s. 153A of the Act for the AYs 2012-13 to 2017-18, the revenue authorities have not questioned the source of additional income and have accepted the same to be assessed as business income. He therefore submitted that Rs.53,85,000 which is residual amount out of the total additional income offered during the search proceedings, cannot take a different colour and cannot be taxed u/s. 69C of the Act. 7. The ld. DR supported the orders of the lower authorities. 8. We have considered the rival submissions and perused the material on record. We notice that during the course of search proceedings, a statement u/s. 131 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Additional Income admitted (In Rs. Crores) 1. 2017-18 till 28/11/2017 0.5385 2. 2016-17 0.8645 3. 2015-16 0.865 4. 2014-15 0.823 5. 2013-14 0.7805 6. 2012-13 0.736 7. 2011-12 0.736 Total 5.395 9. In Q. 17 of the same sworn statement, Dr. Ranganath agreed to offer the said amount of Rs.5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year : Provided that, notwithstanding anything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income. 13. From the plain reading of the section, it is clear that when an assessee offers no explanation or the explanation offered is not satisfactory in the opinion of the AO, then the amount of such expenditure is to be taxed as income u/s. 69C of the Act. The satisfaction to be recorded by the AO should not be objective satisfaction exercised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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