9911796707
TMI Blog2023 (6) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... 'the Act') relating to the Assessment Year (A.Y) 2006-07. 2. At the outset, the Ld. CIT-DR Shri Shramdeep Sinha appearing for the Revenue submitted that the appeal filed by the Revenue wherein the tax effect is below taxable limit prescribed by the CBDT Circular No. 17 of 2019 dated 08.08.2019. Thus the Revenue appeal be dismissed as withdrawn. 3. Recording the above submission, the appeal filed by the Revenue is hereby dismissed as withdrawn. 4. Regarding the appeal filed by the assessee, today is the 30th time of hearing of the appeal, None appeared on behalf of the assessee in spite of notice served through department by way of Affixture on 18.05.2023. There is no authorization given to any Counsel by the assessee. This clearly shows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfied with the above reply and treated the misc. receipts is taxable under the normal provisions of the Income Tax Act. 6.1. Similarly, the Assessing Officer found that the assessee has received unsecured loan of Rs. 40,00,000/- from Mr. Ishwar Adwani which was squared off during the year. The assessee was asked to prove the identity, genuineness and creditworthiness of the lender. However the assessee has submitted the copy of the ledger of the party in its books of account. Therefore the Assessing Officer added the unsecured loan of Rs. 40,00,000/- as unexplained income u/s. 68 of the Act. 7. Aggrieved against the Assessment Order, the assessee filed an appeal before Ld. Commissioner of Income Tax (Appeals). The Ld. CIT(A) found that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has confirmed addition of Rs.40,00,000/- u/s 68 on account of unexplained cash credit. (3) That, the finding of the learned CIT (A) are not justified in law as well as facts of the case and required to be deleted. 9. Regarding Ground no. 1 estimation of 10% of the total Misc. receipts as normal business income and not as shipping income u/s. 115 VI of the Act, the Ld. CIT(A) held as follows: "...(c) I have carefully gone through rival submissions and details placed on records. As per section 115 VI, the relevant shipping income includes income from core activities and incidental activities as stated in Rule 11R. The core activities of the appellant are dredging activities and the incidental income stated in the rule includes ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t disclosed the sales. The sales only represented the price received by the seller of the goods for the acquisition of which it has already incurred the cost. It is the realization of excess over the cost incurred that only forms part of the profit included in the consideration of sales. Therefore, unless there is a finding to the effect that investment by way of incurring cost in acquiring goods which have been sold have been made by the assessee and that has also not been disclosed. In the absence of such finding of fact the question whether entire sum of undisclosed sale proceeds can be treated income of the relevant assessment year answers by itself in negative. The record goes to show that there is no finding nor any material has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the addition of Rs.13,80,664/- is confirmed, as against the addition of Rs. 1,38,06,641/-. This ground of appeal is partly allowed." 9.1. There is no material available on record to hold that the misc. income earned by the assessee is also from the core activity of the shipping business. The misc. receipts generated on the activities carried out by the assessee on shore repairs of tugs with the help of qualifying ships, transport of bunkers, charter, etc. were not dredging activities which form the core activity of the assessee company as well as these activities could not be taken us incidental activity as prescribed in Rule 11 R of the Income Tax Rules. In the absence of relevant details, we have no other option than to confirm t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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