Dhukha Ram Vs ACIT (ITAT Jodhpur)
Summary: The Income Tax Appellate Tribunal, Jodhpur Bench, allowed the assessee’s appeal concerning the application of the special tax rate under section 115BBE to ₹6,25,000 surrendered during a survey. The appeal arose from the order dated 22.10.2025 passed by the Ld. Addl./JCIT(A)-5, Kolkata, in relation to the assessment framed under section 143(3) for Assessment Year 2016-17.
The assessee was an individual engaged in retail trading of medicines and also derived income from operation of a sonography machine. A survey under section 133A was conducted at the business premises on 20.09.2016, during which ₹6,25,000 was surrendered. The assessee subsequently filed a return declaring total income of ₹14,81,960, including the surrendered amount, and paid tax at the normal applicable rate.
During assessment, the Assessing Officer issued a show-cause notice proposing application of section 115BBE. The assessee contended that section 115BBE could apply only where the income fell within sections 68, 69, 69A, 69B, 69C or 69D, and that none of those deeming provisions applied to the surrendered business income. The AO rejected the explanation and taxed ₹6,25,000 at 30% under section 115BBE. Significantly, the AO did not invoke any particular provision from sections 68 to 69D or record a finding that the statutory requirements of any such provision were satisfied.
