Vimal Pramodkumar Mishra Vs ITO (ITAT Nagpur)
Section 115BBE’s 60% Rate Cannot Travel Backwards — Pre-01.04.2017 Transactions Taxable at the Earlier Rate of 30%
The Nagpur Bench of the ITAT has held that the amendment enhancing the tax rate u/s 115BBE from 30% to 60%, together with the additional surcharge, cannot be applied retrospectively to transactions occurring before 01.04.2017. The Tribunal admitted the assessee’s additional legal grounds and held that the enhanced rate could not be invoked in respect of the disputed cash deposits pertaining to FY 2016-17.
The assessee, Vimal Pramodkumar Mishra, filed her return for AY 2017-18 declaring an income of ₹2,92,000. She was carrying on a small trading business and offered income on a presumptive basis u/s 44AD.
During the assessment proceedings, the AO noticed cash deposits aggregating to ₹21,20,000 in the assessee’s accounts maintained with Union Bank, Bank of Maharashtra and Chitnavispura Urban Cooperative Bank.
The assessee furnished a cash-flow statement explaining the principal sources of the deposits. A sum of ₹4,25,451 represented gross receipts from her business, ₹1,65,000 represented earlier bank withdrawals, and ₹16,51,000 was stated to have been received from her father under a family arrangement.
The assessee claimed that her father owned agricultural land measuring approximately 22.748 hectares along with other co-owners and had accumulated agricultural income over the years. The sum of ₹16,51,000 was stated to have been given by him under an “Aapsi Samaj Patra” or family arrangement.
