DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3, LUDHIANA, LUDHIANA vs. SWATI INDUSTRIES, PUNJAB

ITA 547/CHANDI/2024Status: DisposedITAT Chandigarh27 June 2025AY 2019-20Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY, AM आयकर अपील सं. / ITA No. 216/Chd/2024 निर्धारण वर्ष / Assessment Year : 2019-20 Swati Industries D-74, Phase-V, Focal Point, Ludhiana, Punjab-141010 बनाम The DCIT Central Circle-3 Ludhiana, Punjab स्थायी लेखा सं./PAN NO: AADFS5870M प्रत्यर्थी/Respondent अपीलार्थी/Appellant आयकर अपील सं. / ITA No. 547/Chd/2024 निर्धारण वर्ष / Assessment Year : 2019-20 बनाम The DCIT Central Circle-3 Ludhiana, Punjab स्थायी लेखा सं./PAN NO: AADFS58701 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the surrendered amount, arising from business activities, should be taxed as normal business income and not under Section 115BBE. It also ruled that additions for salary and wages paid outside books should be restricted to the period up to the survey date.

What were the facts?

During a survey, the assessee surrendered Rs. 1.60 crore on account of differences in scrap sale price and wages/salary. The assessee offered this as business income, but the AO taxed it under Section 115BBE. The CIT(A) partly agreed, confirming some additions but deleting others.

What were the issues?

The primary issues were whether the surrendered income should be taxed as normal business income or unexplained income under Section 115BBE, and the extent to which additions for payments outside books could be made.

Which sections of the Income-tax Act were involved?

Section 115BBE,Section 69C,Section 69A,Section 68,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, CHANDIGARH BENCH “B”,

Before: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM

For Appellant: Shri Sudhir Sehgal, Advocate and Shri Rohit Kapoor, C.A राज की ओर से/
For Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Hearing: 13/05/2025

Heard together (2 matters)

ITA No. 216/Chd/ 2024
ITA No. 547/Chd/ 2024

Read from the judgment's own cause title. This page is filed under one of them.

PER KRINWANT SAHAY, AM: This is an appeal filed the Assessee and Cross appeal by the Department against the order of the Ld. CIT(A)-5, Ludhiana dt. 19/02/2024 pertaini

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 115BBE

All 8,662 judgments and leading authorities on Section 115BBE →

Recent GST High Court judgments

Search GST case law →