Yuwam Education Private Ltd Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that taxability of surrendered undisclosed income under section 115BBE of the Income Tax Act requires verification on the part of the AO. Accordingly, matter restored back to the file of AO.
Facts- A survey was conducted during the FY 2015-16 and the assessee surrendered undisclosed income of Rs. 46,68,281/ on account of undisclosed receipts. This amount was surrendered, considering the discrepancies found at the time of survey. The assessee was found to have shown the said undisclosed income as included in the revenue from operation head in the profit and loss account. AO noted that the said amount should have been taxed u/s. 115BBE treating the same as deemed income of the assessee.
Conclusion- Held that both the parties are in agreement that issue raised requires verification on the part of the ld. AO so as to enquire into as to whether the income is of the year under consideration and if same is undisclosed income or not. Even the part of the claim of expenditure requires clarification on the part of the assessee and it has been submitted before us that assessee was not given proper opportunity of being heard. In the light of the overall contentions raised we find that the issue raised in Ground no. 1 & 2 require enquiry afresh on the part of the ld. AO. Thus, taking a liberal view of the matter on both the issues and for effective adjudication of the matter is restored to the file of the Assessing Officer who will provide one memo opportunity of being heard, to the assessee to enable the assessee to place on record all the relevant material related to the issues. Since the assessee failed to produce relevant material even before Ld. CIT(A), we deem it a fit case to impose cost on the assessee. Assessee is directed to deposit Rs. 5,000/- in “Prime Minister’s National Relief Fund”. Assessee to produce the receipt of above costs deposit, before Ld. AO.
