Ashokkumar Kesherchand Pande Vs ACIT (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune bench has ruled in favor of assessee Ashokkumar Kesherchand Pande, challenging the application of Section 115BBE of the Income Tax Act, 1961, on income declared during a survey operation. The tribunal directed the Assessing Officer (AO) to tax the additional income at normal rates, not under the provisions of Section 115BBE.
The case, Ashokkumar Kesherchand Pande Vs. ACIT (ITAT Pune), pertains to the assessment year 2019-20. Ashokkumar Kesherchand Pande, an individual engaged in the business of agricultural equipment (seeds and pesticides) under the name “M/s. Chetan Sheti Sahitya,” had filed a return of income declaring a total income of Rs. 1,44,78,720/-.
A survey operation conducted under Section 133A of the Act on March 6, 2019, at the assessee’s business premises revealed discrepancies. A physical verification of stock showed a value of Rs. 1,65,87,189/-, against Rs. 1,83,75,152/- shown in the Trading Account, resulting in a stock deficit of Rs. 17,87,963/-. This deficit was subsequently offered to tax by crediting it to the Trading Account.
Additionally, the survey identified expenditure of Rs. 32,58,608/- incurred in the construction of a property named “Pande Square,” for which the source was not explained. This amount was also offered to tax by crediting it to the Profit & Loss Account in the return of income.
