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Facts
The assessee, a doctor and businessman, was subjected to a survey where unexplained debtors amounting to Rs. 2,05,00,000/- were found. These were surrendered as additional income for AY 2017-18. The Assessing Officer (AO) treated this income as unexplained investment under Section 69 and taxed it at a higher rate under Section 115BBE. The CIT(A) upheld the AO's order.
Held
The Tribunal held that the surrendered amount, arising from debtors related to the assessee's business, could not be treated as unexplained investment under Section 69 or taxed at the higher rate under Section 115BBE. The Tribunal reasoned that the income was business income and thus should be taxed at the normal rate.
Key Issues
1. Whether the surrendered income from debtors should be treated as unexplained investment under Section 69 and taxed under Section 115BBE at a higher rate. 2. Whether the amendment to Section 115BBE applies retrospectively.
Sections Cited
143(3), 69, 69A, 115BBE, 234A, 234B, 234C, 234D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;djvihy la-@ITA No. 1195/JP/2024
Resultantly, the appeal filed by the assessee is allowed and the impugned order passed by Learned CIT(A) is hereby set aside.
2.1, 3.1 and 3.2 in favour of the assessee. Ground no. 1 is technical therefore, we have not decided this ground of the appeal of the assessee as we have considered on the merits of its case. Ground no. 4 being consequential for levy of interest and ground no 5 being general in nature same is not adjudicated.
Order pronounced in the open court on 11/02/2025.
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सहायकपंजीकार@Aेेज. त्महपेजतंत