TMI Blog2023 (6) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... urred. The revenue was not able to submit any source of income for the assessee other than the business income. The assessee declared the income and filed the return u/s 44AD of the Act under the presumptive scheme. The assessee declared the surrendered income in the return and all the surrendered income are nature of business transactions. We fully relied on the order of M/S CHOKSHI HIRALAL MAGANLAL [ 2011 (8) TMI 1341 - ITAT AHMEDABAD] and M Ganpati Mudaliar [ 1964 (4) TMI 22 - SUPREME COURT] - Accordingly, the addition made u/s 69A amount to Rs. 49,89,638/- is liable to be deleted and the calculation of tax u/s 115BBE is liable to be quashed. The income of the assessee will be treated as business income. Decided in favour of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law and on facts in treating the surrendered income u/s 69 of the Act and taxing the same u/s 115BBE of the Act, without considering the facts of the case and without observing the principles of natural justice. (b) That having regard to the facts and circumstances of the case, Hon ble CIT(A) has erred in law and on facts in confirming the action of Ld. AO in charging income tax as per provisions of section 115BBE i.e. @ 60% plus surcharge @ 25% on the assessed income, without considering the facts of the case and without observing the principles of natural justice. 4. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee filed the return u/s 44AD of the Act and has no liability for maintaining the books of account u/s 44AA of the Act. Therefore, the addition u/s 69 A is uncalled for. 6. The ld. DR vehemently argued and fully relied on the assessment order. The relevant para 3.4 of the assessment order is reproduced as below: 3.4 It is observed that assessee has shown surrender amount of Rs.49,89,638/- under the head Income from other sources as any other income. Thus, evidently, source of investment cash, purchase of stock and investment in construction of house neither claimed nor proved from business. Assessee has also not furnished any documentary evidence to link the investment with the source. Thus, investment in the cash, pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written submission the relevant para is duly inserted for adjudication: 8. We heard the rival submission and consider the documents available in the record. The assessee declared the income during the survey. The surrendered income was duly declared in the return of income filed u/s 139(1). Considering the nature of surrendered income is excess cash found, excess stock found, expenditure incurred. The revenue was not able to submit any source of income for the assessee other than the business income. The ld. AR relied on the order of the ITAT Ahmedabad in the case of Chokshi Hiralal Maganlal vs. DCIT (ITA No. 3281/Ahd/2009 dated 05.08.2011)The relevant paragraph is inserted as follow:- In which it was held that for invoking dee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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