TMI Blog2024 (1) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... ash 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. - Shri S.S.Godara, Judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and excess cash is assessable u/s 69A of the Act. The AO also held that accordingly tax is to be levied as per Section 115BBE of the Act. AO also disallowed the assessee s claim of partners salary on the said excess stock. 2.1. Aggrieved by the Assessment Order the assessee filed an appeal before the Ld.Commissioner of Income tax (appeal). The Ld.CIT(A) upheld the addition. Aggrieved by the or the of the Ld.CIT(A) the assessee filed appeal before this Tribunal. Submission of ld.Authorised Representative(ld.AR) : 3. The ld.AR filed a paper book. Ld.AR explained that there was a survey in the case of assessee on 13.11.2014. During the Survey, to buy peace and avoid litigation, assessee offered Rs. 1,42,67,032/- as additional business income for A.Y.2015-16, accordingly, assessee filed return of income for A.Y.2015-16 on 24.09.2015. Assessee claimed partner s salary of Rs. 76,32,000/- as per section 40(b) of the Income Tax Act. The Assessing Officer (AO) has not allowed the salary paid to partner as deduction. The ld.AR for the assessee stated that the disclosure was related to business of the assessee. No evidence has been brought by the AO to establish that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same for taxation for the current year i.e FY 2014-15. 5.2. Thus, it can be observed from the statement that partner of the assessee has not given any explanation for the excess stock found. Similarly, no specific explanation was provided by the assessee either before the AO or before the Ld. CIT(A). The AO had issued specific show cause notice to the assessee which is reproduced in the assessment order. The Assessee kept on saying that the stock found is its business stock hence section 69 is not applicable. Assessee claimed that assessee is doing only one business ie., Sale of gold, silver ornaments hence the excess stock is its business stock and not taxable u/s 69. 5.3. In this case the AO had specifically asked the Assessee to explain the source of investment in the impugned stock. The Assessee has not offered any explanation for the same. Admittedly the assessee has not recorded the impugned purchases in the books. Before us also the Assessee has not filed copy of any purchase register to prove that the impugned purchases were recorded in the books. Thus, the impugned purchases were not recorded in the books. It means, the investment made in the purchase of 5246.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of an assessee includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, the income-tax payable shall be the aggregate of (a) the amount of income-tax calculated on income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, at the rate of thirty per cent; and (b) 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 (a). (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of subsection (1). 6.1. The 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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