KARAN GOEL,LUDHIANA vs. DCIT, CC-3, LUDHIANA

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.1429/CHANDI/2025 (िनधा�रणवष� / Assessment Year: 2019-20) Karan Goel DCIT- CC – 3 587 – B, Aggar Nagar, Ludhiana बनाम/ Vs. Opp. BVM School, Kitchlu Nagar Punjab – 141001 Ludhiana, Punjab – 141001 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AFMPG-5430-R (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Sh. Vipin Gupta (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Sh. Vivek Vardhan (Addl. CIT) - Sr. DR सुनवाईकीतारीख/Date of Hearing : 22-07-2026 घोषणाकीतारीख /Date of Pronouncement 03-08-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of an order of learned Commissioner of Income Tax (Appeals)-5, Ludhiana [CIT(A)] dated 12.09.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 144 of the Act on 30.09.2021. 2. The issue in the present appeal is in a narrow compass. Pursuant to survey action u/s 133A on the assessee on 25.10.2018, impugned

assessment was framed on the assessee. The assessee filed return of income on 30.10.2019 declaring income of Rs.24.17 Crores. During assessment proceedings, Ld. AO noted that there was shortage of physical stock which was held to be sold outside the books. On this shortage, Ld. AO applied Gross profit Rate of 45% to make addition of Rs.60.09 Lacs to the returned income of the assessee. 3. During first appeal, the assessee, inter-alia, stated that it already made voluntary surrender of Rs.170 Lacs in the return of income on account of unexplained expenditure in the building and paid due taxes @60% thereon. Accordingly, the impugned addition would be double addition only. Concurring with the same, Ld. CIT(A) deleted Gross Profit addition on shortage of stock. However, by way of additional ground, the assessee contended that the undisclosed income was inadvertently taken as other income instead of business income which would be taxable at the rate of 30%. This plea stood rejected by Ld. CIT(A) on the ground that the assessee failed to demonstrate that this expenditure was met directly from business operations. Aggrieved, the assessee is in further appeal before us. 4. It is quite clear the pursuant to survey action, the assessee has made surrender of unexplained expenditure of Rs.170 Lacs in the regular return of income which is assessable as income from other sources only. The correct rate applicable to the said surrender would be as per Sec.115BBE. The Ld. CIT(A), finding that the surrender made by the assessee far exceed the profit estimated by Ld. AO on shortage of stock, accepted the plea of the asssessee and deleted the

impugned addition. Now the assessee seek further relief by raising a plea that the surrender should be construed as business income. The fact remains that the surrender has been made for unexplained expenditure which is assessable as income from other sources only. The asssessee himself has made this surrender voluntarily and paid due taxes thereon as per Sec.115BBE which is consequential in nature. Having taken the benefit of this surrender against impugned addition, the assessee, now, could not disturb the position taken in the regular return of income. Therefore, we concur with the adjudication of Ld. CIT(A). 5. The appeal stand dismissed. Order pronounced on 03rd August, 2026

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 03-08-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR ITAT CHANDIGARH