Mukesh Agarwal Vs ACIT (ITAT Agra)
The ITAT Agra allowed the assessee’s appeal and held that the Assessing Officer was not justified in taxing ₹25 lakh under Section 115BBE of the Income-tax Act. During a survey conducted on 31.08.2016, the assessee voluntarily disclosed ₹75 lakh, comprising ₹50 lakh as business receipts and ₹25 lakh relating to a hospital building under construction. The entire surrendered amount was subsequently offered as business income in the return for AY 2017-18. During assessment proceedings, the assessee produced audited books of account, balance sheet, capital account, and fixed asset records. The Assessing Officer examined these records but neither identified any defect nor rejected the books of account. The Tribunal noted that the investment in the hospital building was recorded in the books and formed part of the disclosed income. Since the disclosure was made before the amendment enhancing the tax rate under Section 115BBE came into force on 15.12.2016, the provision could not be applied retrospectively. Accordingly, the addition taxed under Section 115BBE was deleted and the appeal was allowed.
Assessee was represented by by Shri Deepak Maheshwari, Adv
FULL TEXT OF THE ORDER OF ITAT AGRA
This appeal has been preferred against the impugned order dated 15.01.2026 passed in Appeal No CIT(A)-IV/KNP/10762/2019-20 by the Id Commissioner of Income Tax, Kanpur [hereinafter referred to as the “CIT(A)] u/s. 250(6) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act), for the A.Y. 2017-18, wherein Id CIT(A) has dismissed assessee’s appeal.
