Shreeji Infratech Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that provisions of section 69A r.w.s. 115BBE of the Income Tax Act gets applicable as source of undisclosed income admitted during the course of survey not explained. Merely disclosing and paying tax doesn’t protect assessee from clutches of section 69A.
Facts- The assessee is engaged in the business of Real Estate Development. Post completion of scrutiny assessment, PCIT noticed that undisclosed income of Rs.1,01,00,000/- admitted during the course of survey u/s 133A of the Act, under the head “Any other income”. Accordingly, tax was calculated on the same at normal rates. However, PCIT was of the view that the same falls within the ambit of section 69A. Accordingly, held that the order passed by AO u/s 143(3) of the Act was erroneous and prejudicial to the interest of Revenue. Being aggrieved, the present appeal is filed.
Conclusion- PCIT held that since the undisclosed income admitted during the course of survey was found to have been received by the assessee in cash, the Assessing Officer failed to examine the applicability of provision of Section 69A r.w.s. 115BBE and of Section 269ST and of Section 271DA of the Act, hence to that extent the order is erroneous and prejudicial to the interest of Revenue. Just disclosing and paying tax does not protect the assessee from the clutches of Section 69A of the Act unless the source is satisfactorily explained and backed by evidence.
