Case Law Details
Sharp Chucks and Machines Pvt. Ltd. Vs DCIT (ITAT Amritsar)
ITAT Amritsar held that once source of surrendered income is proved to be business income, the same cannot be taxed as deemed income under section 69 read with section 115BBE of the Income Tax Act.
Facts- A survey was conducted at the business premises of the assessee on 15.07.2016 and thus, it was submitted that this case was not covered by the demonetization period and the appellant to settle the case based on discrepancy noticed by the survey team made a surrendered of sum of 1.61 crores as additional business income for financial year 2016-17 relevant to the Assessment Year under consideration.
During scrutiny proceedings, the AO accepted the fact that the appellant surrendered a total sum of Rs. 1.61 crores which was utilised in the excess stock, excess cash, and in expenditure of building. AO had accepted the fact that the additional income derived by the appellant was out of the business carried out, however, while passing the order u/s. 153(3) dated 20.09.2021, he has disputed the surrendered income amounting to Rs.81,95,000/- as being utilised for construction of building and so taxed u/s. 69 read with Section 115BBE of the Income Tax Act, 1961.
CIT(A) confirmed the addition made by the AO. Being aggrieved, the present appeal is filed.
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