Naveen Batra, New Delhi V. ACIT, Circle-51(1), New Delhi

CO 69/DEL/2020

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 4976 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 13-08-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: E
• Next Hearing Date: 03-07-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 11-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69; 6; 63; 132; 10; 2; 11; 143(3); 234B; 69B; 250; 201; 69A; 13; 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR US, JUDICIAL MEMBER ITA No.32/Del/2020 Assessment Year 2017-18 Dy.CIT Circle-49(1) Delhi Vs. Sh. Naveen Batra 46, Rani Jhansi Market Karol Bagh, Delhi-05 TAN/PAN: AFTPB6995H (Appellant) (Respondent) CO No.69/Del/2020 Assessment Year 2017-18 Sh. Naveen Batra 46, Rani Jhansi Market Karol Bagh, Delhi-05 Vs. ACIT Circle-51(1) New Delhi TAN/PAN: AFTPB6995H (Appellant) (Respondent) Applicant by: Shri Manpreet Singh Kapoor, Chartered Accountant Respondent by: Shri Subhra Jyoti Chakraborty, CIT-DR Date of hearing: 04 07 2024 Date of pronouncement: 14 08 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T he ca pti oned a ppeal has been file d at t he i ns tance o f the Reven ue aga ins t th e f irs t appellate o rder pass ed by the Com miss ioner of Inc ome T ax (A ppeals )-XV II, N ew D elhi [‘C IT (A )’ i n sh ort], da ted 31. 10. 20 19 un de r s. 250 of the A ct ar isi ng f rom ass e ss me nt o rde r dat ed 27. 12. 201 8 pa ssed b y the A ssessi ng O ff ic er (A O ) unde r Secti on 143(3) of the Income Ta x ITA No.32/Del/2020 & CO No.69/Del/2020 2 A ct, 19 61 (the A ct ) concerning A Y 2017 -18. The A ssessee h as als o filed cr oss obj ect io n me mo i n the revenue appeal. 2. Br ie fl y stated, the assessee is eng aged in the bus iness of trad in g in Jew eller y. A surve y pr oceedings w er e i niti ated b y the Income T ax deptt. unde r sect ion 13 3A of the A ct on Bat ra Jew ell ers prop. N avi n Ba tra on 11. 11. 201 9 which w as late r conve rted i nto s ea rc h ac tion un der s. 132 of t he A ct. E xcess st oc k of G old a nd Jew e lle ry w ort h Rs. 2, 25, 53, 159/ - w as found at the bus iness premises o f the Assessee. T he asses see t reated s uc h exce ss stock as ‘busi ness income’ and decla red the said bus in ess inco me i n t he St at e me nt o f Profi t & Loss and corre spondingl y, th e sai d st oc k w as inc lu ded in stock i n trade of the ass essee for the A Y 2017- 18 in qu est ion. The A O treated the e xces sive sto ck of Rs. 2, 25,5 3, 159 for t he A Y 2017- 18 as assess able unde r the hea d ‘i nc ome fro m other sourc es ’ u nde r the umbre lla of s. 69A r. w. s 115B BE of the A ct . Si mul ta ne ous l y, t he exc ess cas h a mou nt ing t o Rs. 63, 8 7, 912/ - foun d fr om the b us iness premises o f t he asse ssee dur in g s earc h was als o t reated b y the A O as une xplained cas h taxable under the hea d ‘income from ot he r so urces ’ under s. 69A r. w . s. 115B E of t he A ct. 3. A gg rieve d, the as sessee preferred a ppe al be for e C IT (A ). It w as cont ended before the C IT (A ) t hat the e xcess i ve s tock de tec te d fro m the b usi nes s pre mise s of the assessee and bears dir ec t ne xus to j ew e lle y busi ne ss run b y the a sse ssee. Such excess ive stock is offs hoot of bus iness being c ar ried out and thus as sessab le as ‘bus iness i nc ome ’. Consequentl y pr ovis ions of s. 6 9A are ousted in the i ns tan t cas e. T he C IT (A) to ok note of s ubmi ssions and ITA No.32/Del/2020 & CO No.69/Del/2020 3 explana tio ns provi ded b y t he assess ee a nd foun d merit in t he plea of t he assessee. T he re -characte ri zat ion o f income by t he AO fro m ‘bus iness i nco me ’ of fered by the as sessee to ‘income fro m ot he r sources ’ w as thus set aside and c ance lled a nd sta nce of th e assessee was res tored. The re leva nt para de al i ng with the iss ue b y the C IT (A) i s re produced hereunde r for ea s y refe rence: “ I ha v e c on s i d e r e d th e f ac t s o f t he c a s e, f in di n g s o f t h e A O an d su bm i s s i o n s o f t h e a pp e l l a n t . T h e a p p e ll a nt w a s e nga g e d i n t he b u si n e s s o f j e w e l l e r y i n t h e n a m e of B at ra J e w e l l e rs f o r m a n y y e ar s . T h e s e a rc h w a s c o nd uc t e d b y t h e I nv e st i ga t i on W in g of t he I nc o m e T a x D e p a rt m e nt a n d a P u n c hn am a d a t e d 1 1. 1 1. 20 10 h a s b e e n d ra w n . T h e sai d p un c h a n a m a w a s d ul y p re pa r e d by t h e A C I T o f t h e i n ve st i g at i o n te a m u n i t- 3, N e w D e l h i . A s pe r t he sa i d P un c hn am a t h e c a s h a m ou n t i n g to RS . 58 , 96 , 50 0/ - h as b e e n f o u n d a lo ng w i t h t h e st o c k o f R s. 4 , 30 , 50 , 2 9 1/ - a s p e r t he v a l ua ti o n re p o rt . T he a p pe l l a n t h a s a s t o c k i n ha nd a s o n t h e da t e o f s e a r c h R s. 1, 6 5, 1 1, 5 9 8/ - a nd e x c e s s st o c k w a s f o u nd at R s. 2 , 2 5, 4 3, 2 33 / - T h e s ai d st o c k w a s f o un d a t t h e b u si n e s s p re m i s e s of t h e a p p e l l a nt T h e a pp el l a nt h a s t r e at e d e x c e s s s to c k a s b u s i n e s s in c o m e a n d d e c l a r ed t h e a m o un t o f R s. 2, 2 5, 4 3, 2 33 / - of st oc k wh il e f il i ng I T R f o r t h e A. Y . 2 01 7- 1 8. H e h a s f i l e d t h e c o p y of P &L du l y d i s cl o si n g th e d i f f e r en c e o f s t o c k u n d e r t h e h e ad ot h e r i n co m e . P a r t i c u l a r s A m o u nt P a r t i c ul a r s A m o u nt T o O pe n i ng S t o c k 1 , 5 5 , 7 0 , 37 5 B y S al e s 2 , 5 5 , 6 0 , 7 2 6 T o P u r c h as e 4 , 4 0 , 4 1 , 42 0 B y C l os in g S t oc k 3 , 8 9 , 7 9 , 9 3 0 T o L ab ou r C h ar g e s 2 , 7 3 , 8 4 7 T o G r o s s P r o f i t 4 9 , 5 5 , 0 1 5 T o t a l 6 , 4 8 , 4 0 , 65 6 6 , 4 8 , 4 0 , 6 5 6 T o A c c ou n t in g C h ar ge s 3 4 , 2 0 0 B y G r os s P r o fi t 4 9, 5 5 , 0 1 5 T o A d v e r t i s i n g E x p 1 2 , 4 0 0 B y O t he r I nc o m e 2 , 2 5 , 4 3 , 2 3 3 T o A u d it F e e s 3 7 , 9 5 0 T o B a nk I n te r e s t & C h ar ge s 1 4 , 1 0 0 T o B u s i ne s s P r o m ot i o n 2 9 , 3 2 8 T o C ar M a i n t e n an c e 5 2 , 8 1 4 ITA No.32/Del/2020 & CO No.69/Del/2020 4 T o C o m m i s s io n O n C a r t 1,9 2,0 4 1 T o c on v e y an c e E x p e ns e s 1 , 6 3 0 T o D e pr e c i a t i on 1 , 3 4 , 7 8 6 T o E l e c t r i c i t y E x p. 1 , 0 4 , 9 7 2 T o I n s ur an c e 3 3 , 0 8 8 T o In t e r e s t o n U ns e c u r e d Lo a n 9 , 0 3 , 8 9 5 T o M i s c . E x p . 2 , 1 8 9 T o P a c k a g in g M a t e r i al 4 6 0 0 6 6 , 4 3 0 T o P r i nt i 5 98 4n g & S t a ti t o ne r y 2 3 42 8 4 , 6 0 0 T o R a t e & T ax e s 6 0 97 00 5 , 9 8 4 T o R e p ai r & 1 6 17 0M a i nt 2 3 , 4 2 3 T o S a l a r y 6 , 0 9 , 7 0 0 T o S t a f f W e l f ar e 1 6 , 1 7 0 T o T D S P ai d 2 , 4 1 0 T o T e le p h on e 2 8 , 0 3 7 T o W a t e r E x ps . 3 , 0 9 6 T o N e t P r o f it 2 , 5 1 , 8 5 , 00 0 2 , 7 4 , 9 8 , 24 8 2 , 7 4 , 9 8 , 2 4 8 7 . 4 T he ab o v e t r a di n g a n d P &L a c c ou nt c le a rl y d e p i ct s t h e a nn u al a c co un t s o f t he a pp el l an t . T h e a p p el l a nt h a s i n c l u d e d e x c e s s i v e s t o c k f o u nd du r i ng t he s e a r c h of R s. 2 , 25 ,43 , 2 3 3/ - i n p u rc ha s e s, w hi c h w as f i na l l y r ef l e c t e d as p a r t o f to t al p u rc h a s e a m o u n t t o R s. 4 , 40 , 41 , 42 0 / - a n d t he s a m e a l so f ou n d i n c l u d e d a s p a rt t h e c lo si ng st o c k i n t r ad i ng a nd P &L a c c o un t . I n a dd i t i o n t o t he p u rc ha s e an d c lo si n g s t o c k t h e a m o un t o f R s. 2,2 5, 4 3 , 2 33 / - a l s o f ou nd c re d it e d i n t h e P &L a c c o u nt un de r t h e he a d O t h e r I nc o m e . T he n e t ef f e c t o f t h i s d o ub l e e nt ry t r e a t m en t i s t h a t , f i r st i n u n - r e c o r di n g st o c k o f J e we l l e r y h a s b e e n b ro u gh t o n t he bo ok s a nd n o w f o r m o f th e r ec o rd e d s t o c k w h i c h c a n b e s u bs e q u e n t so l d o ut an d f o r m p ar t t o an y o t h e r n o r m a l t r a n sa c t i o n. T h e d i f f e re nc e i n st o c k f o u n d d ur i ng t h e s e a r c h ha s b e e n re c o r d e d i n t h e bo o k s o f ac c o u nt s a nd of f e r t o ta x b y t h e c r e d i t i n g t h e sai d a m o un t i n t he P &L ac c o u nt . T he r e f o r e , t h e e x c e s s st oc k w a s br ou gh t t o t he T a x u nd e r t h e h e a d b u si n e s s i n c o m e a nd n o t u n d e r t he he a d i nc o m e f r o m o t h e r s ou rc e s u/ s 6 9A . T h e e x c e s s st o c k i s f o u n d fr om t he bu si ne s s p r e m i s e s of th e ap p e l la nt an d o n t h e si m i l a r f ac t s H o n' b l e R a j a st h a n H i g h Co u rt i n t h e c a se o f B a j a r a ng T ra d e r s 2 01 7 (1 1 ) T M I 38 8 D T 1 2 S e p t e m b e r 2 0 17 ho l d t ha t E x c es s st oc k su r r e nd e re d d u r i n g t h e c ou r s e of s u rv e y h a s t o b e bro ug h t t o be ITA No.32/Del/2020 & CO No.69/Del/2020 5 t ax e d un de r t h e he a d b u s in e s s i n co m e n ot t h e i n c o m e f ro m o t he r so u rc e s. T h e f i n d i n g of t he H i g h C o u rt i s r ep ro du c ed as u nd er : " E x c e s s st oc k s u r r e n d e re d d u r in g t h e c o u rs e o f s u r ve y - w h e t he r t he a m o un t su r r e nd e re d b y w a y o f i n v e st m e n t i n t he u n re c o r d e d s t o c k o f ri c e ha s to b e b r ou g h t t o t a x un de r t he h ea d " b usi n e s s in c o m e " or " i n c om e f r o m o t he r so u rc es" ? - H e l d t ha t : - I T A T i s c o rr e c t t o c on cl u de t h at in t h e a n n ual a c c ou nt s, t he pu r ch as e s o f R s . 70 , 04 , 81 4 / - we r e f i na l ly r e fl ec t e d a s p a rt o f t ot a l p u rc ha se s a m ou nt i ng t o R s. 3 3, 4 7, 19 , 65 8 / - in t h e p r o fi t a nd l os s a c c ou nt a n d th e s a m e al so f o un d i n c l ud e d as p a rt of t he c l o s in g s t o c k a m o u n t t o R s. 1 , 94 , 4 2 , 56 9/ - i n t he p r of i t / l o ss a c c o u n t s i n ce t h e sa i d s t o c k o f r i c e w a s n ot so ld ou t . I n a dd it i o n t o t h e pu r c ha s e a n d t h e c l o s i n g s to c k , t h e a m o u n t of R s. 7 0, 0 4, 8 1 4/ - a l s o f ou n d c r e d i t e d i n t he p r of i t a nd l o ss a c c o u n t a s i n c om e f r o m u n d i s cl o s e d s o ur ce s. T he n e t ef f e c t of t hi s d o u bl e e nt ry a c c o un t in g t re a t m e n t i s t ha t fi r st l y t he u n re c o r d e d st oc k o f ri c e h a s be e n b r ou g h t o n t he boo k s an d n o w f o rm s p a rt o f t h e re c o r de d s t o c k w h i c h c a n b e su bs eq ue n t l y so l d o ut a n d t h e p r of i t / l o s s t h e r e f r om wo u l d b e sub je c t t o t ax a s a n y o t h e r n o r m a l bu si ne s s t r an sa c t i on . S e c o n d l y , t he u n re c o r d e d i n ve st m e n t w hi c h h a s go n e i n p u r c h a se o f s u c h u n re c o r d e d s t o c k o f ri c e ha s b e en re c o r d e d i n th e bo o k s of a c c o u n t s a n d o f f e re d t o t a x b y c r e di t i n g t h e sa i d am o u n t i n t he p r of i t a n d l o s s ac c ou n t . H a d t h i s i n v e st m e n t be e n mad e o u t o f k no w n s ou rc e, t he r e wa s n o n e c e s si t y f o r a s se s s e e to c re d i t t he p r of i t / l o s s a c co un t an d of f e r t h e sa m e t o t a x . Ac c ord i n g l y , we d o no t s e e an y i n f i r m it y i n a s s e s s e e' s b ri ng i ng s u ch t ra n s a ct i o n i n i t s b oo k s of a c c o u nt s a nd t h e ac c o u n t i ng t r e a t m en t t h e re o f s o a s t o re gu l a ri se i t s bo ok s of a c c o u n t s. I n f a c t , t he s am e p r ov i d e s a c r e d i bl e b a s e f o r Re v e nu e t o bri n g t o t ax su b se q u e n t p r of i t / l o s s o n sa l e o f su c h st o c k of r i c e i n f ut u r e. I n t he pr e se n t c a se , t h e a s s e s s e e i s d e a l i n g i n s ale of f oo dg ra i n s, ri c e a n d oi l s e e d s, a n d t h e e x c e s s st o ck wh ic h ha s b e e n f ou nd d u ri n g t h e c o u r se of su rv e y i s s to c k of r ic e . T h e r e fo r e , th e i n v e s t m e nt i n p r o c u re m e n t of s u c h st o c k of r i c e i s CL EA R L Y I D E N T I FI A B L E A N D R E L A T E D T O T H E R E G U L A R B U S I N E SS st o c k o f t he a s s e s se e . T h e d e c i si on o f t he C o- o rd i n at e Be n c h i n c a se o f S h ri R a m n a ra ya n B i rl a ( 2 0 1 6 (9 ) T M I 1 3 54 - I T A T J A I P U R ) su pp o r t s t h e c a se o f t h e a ss e s s ee i n t hi s r e g ar d . T h e re f o r e, t h e i n v e st m e n t i n t h e e x c e ss st o c k h a s t o b e b ro u g h t t o t a x un d e r t h e he a d " bu si ne s s i n c o m e " a nd n ot u nd e r t h e h e a d i nc o m e f ro m ot h e r so u rc e s" 7 . 5 I n t he c a se of C IT v s. Ba i r at h i G em s P v t L t d. 20 17 ( 8) T M I 7 21 D t . 8 t h Au g u st 2 01 7, Ho n ' bl e I T A T Ja i pu r ho l d t h a t " e x c e s s st o c k o f f e r e d i n s u rv e y i s p a rt of B u s s i n e s s i nc o m e. T h e ex c e s s ITA No.32/Del/2020 & CO No.69/Del/2020 6 st o c k i s d e t e r m i n e d by v al u in g t h e b u s i ne s s s t o c k at c u rr e n t p r i c e i n s te a d of t h e p ur c ha se p r i c e. No t hi n g w a s b rou gh t t o s ug g e st t ha t t h i s wa s n o t a r e g u l a r it e m o f t h e st oc k de a l t b y t h e a ss e s s e e . 7 . 6 I n t he c a s e o f S h ri L o v i sh s i n g h a l , S h r i Va su S i n g h al , S h r iP r am on d K um ar S i n g h al a n d sh r i v i n o d k um a rs i n g h al Vs. In c o m e Ta x O f f i c e r, W a rd -2 a n d A C IT , Ci rc l e - S ri g an g an a ga r, Ho n ' bl e IT AT J O D H PU R Be n c h h el d th at : “ S u r r e n d e r of i n c o m e d u r i n g su r v e y - t o be t re at e d a s B us in e s s i nc o m e o r t a xa bl e u / s 69 - A O m a d e t h e a d di t i o n s u /s 6 9 wh il e c al c u la t in g t he t a x ra t e a s p e r p ro v i si o ns o f S e ct io n 1 15 B BE - H e l d th at : - As p e r d e c i s io n i n t h e c a s e o f B aj r a n g T r a de r s [ 2 01 7 (1 1 ) T M I 3 8 8 - R A JA S T H A N H I G H C O U R T] as o b se rv e d t ha t th e H on ' bl e H i gh Co u r t i n r e s p e c t of e x ce s s s to c k f o un d d u ri n g t h e c o u r s e of s u rv ey an d s u r r e nd e r m a d e t h e re of wa s f ou nd t o b e t a x a b l e un d e r t h e h e a d " bu s i n e s s an d p ro f e s s i on ' . S im il a rl y i n re sp e c t o f e xc e s s c a s h f ou n d ou t o f s al e of go o d s i n w h i c h t he as s e s s e e wa s d e a li n g w a s al s o f o u n d t o be t ax a bl e a s b u si n e s s i nc o m e . A pp l y i n g t h e p r o po s i t i on of l a w l ai d do w n i n t he j u d i ci a l p r on ou nc e m e nt s a s d i s c u s s e d ab o v e , I ho l d t h a t t h e l o w e r au t h o r i t i e s w e r e no t ju st i f ie d i n t a x i n g t h e s ur r e n de r m a d e o n a c c ou n t of e x ce s s s t o c k a n d e x c e s s c a s h f ound U l/ s 6 9. T h u s, t h e re i s n o j u st i f i c at i on f o r t a x in g s u c h in co m e / 1 15 BB E o f t h e Ac t . 7 . 7 C o n s i d e ri ng t h e e vi d e n c e s f u r n i s he d by t h e a p p el l a n t a n d d e c i si o n s of t h e j ud i ci a l a u t h o ri t i e s, A O i s n o t j ust i f i e d i n t a x i n g t he e x c e s s st oc k s u r re n d e re d b y th e ap p e l l a nt a nd of f e r e d a s o t he r i nc o m e i n P &L a c c o un t , as i n c o m e f r o m u nd i s cl o se d sou r ce s u/ s 6 9A a n d t o b rou gh t t he s ai d a m o u n t t o t a x u / s 1 15 B BE . Si n c e st o c k f ou n d f r om t he bu si ne s s p r e m i s e s of t h e a p p e ll an t a nd a s p e r t h e d e c i si o n s o f t he j ud i c i a l a u t h o r i ti e s as dis c u s se d a b ov e i t i s h e l d b u si n e s s i n c o m e of t he a p p e l l an t . T hu s, pr ov i s i o n s o f se c t io n 1 1 5B B E i s no t a p p l i c a bl e i n t h e c as e of t h e a p p e l l a nt . H e nc e , ad d i t i o n m a d e b y th e AO u / s. 69 A r. w . s. 11 5BB E is n ot su st ai na b l e a n d i t i s h er eb y de l e t e d . 7 . 8 T h e s e G r ou n d s of ap p e a l of t he a p p e l l an t a re a ll o w e d. ” 4. T he C IT (A ) als o cons i de re d t he submiss ions made with re fe re nce to a ddi tions on account excess ca sh and ret ai ne d addi ti ons ma de parti al l y to t he e xtent of Rs. 4, 9 1,412/ -. The ITA No.32/Del/2020 & CO No.69/Del/2020 7 re ma in ing a ddi tio ns o f R s. 58, 96, 500/- w as dele te d b y the C IT (A ) in foll ow ing te rms. “ 6. 3 I ha v e c o n s i d e re d t h e f a c t s o f t h e c a se , f i nd in g s o f t h e AO an d s u b m is s i on s of t he ap p e l l an t. E x c e s s c a sh a m o un ti n g t o R s. 6 3, 8 7, 9 1 2 / - f o u n d a t t h e b u si n e s s p r e m i se s o f t h e ap p e l l a n t d u ri n g t h e s e a r c h c a r ri e d ou t o n 11 . 11 . 20 1 6. T he A O h as t re a t e d t h e e x c e s si v e c a s h a s u ne x pl ai n e d m on e y u /s . 6 9A of t h e A c t s ub j ec t t o b e t a x e d u/ s 11 5B B E . T h e ap p e l l an t ha s s ub m it t e d t ha t d u ri ng t h e a pp e l l a t e p ro c e e d i ng s t h a t e x c e s s c a sh h a s b e e n f o un d i n t h e b u s in e s s p r e m i se s o f th e as s e s s e e a n d i t sh ou l d be t r e at e d a s b u s in e s s i n co m e o f t he a s s e s se e a n d no t a s an y u n e xpl ai n e d i n v e s t m e n t or e xp e n d i tu r e . T h e c a sh i s g e n e ra te d f ro m t h e sa l e of g ol d a n d j e w e l l e ry an d i t i s no t an u ne x pl a i n e d c a sh . T h at a c a s h o f R s. 5 8, 9 6, 50 0/ - w a s f o u n d at t he b us in e s s p r e m i se s of t he a s s e ss e e du r i n g t h e se a r c h c on du c t e d b y t h e i n v e st ig a ti n g t ea m. T he t o t a l c as h a p p e ar i n g i n t h e b o o k s o f ac c ou nt o f t h e a s s es s e e i s i n n e ga t i v e (- ) R s. 6 3, 8 7, 9 12 / - o u t o f w hi c h a pp e l lan t h a s d e cl a r e d t h e a m o u n t of R s. 58 , 96 , 50 0 / - u n d e r t he " P rad ha n M an t r i G a ri b K a l y an Y o j o n a (P M G K Y ) . 6 . 4 T he G ov e rn m e nt o f I nd i a ha s i n t r od uc e d a s c h e m e i n C h a pt e r I X A c a ll e d P ra d h a n M a nt r i G a ri b K al y a n Y o j na 2 01 6 an d s h a ll c o m e in t o i n fo rc e f ro m 1 7- 1 2 - 2 01 6 t i l l 31 - 1 2- 2 0 1 7 . As pe r t h e s ai d s c h e m e , w h e r e a n y pe r s o n d e cl a r e d a ny i n c om e i n t h e fo r m o f c a s h o r de p o si t i n an a c c ou nt m a i nt a in e d b y p e r son wi t h a s p e c i fi c e nt i t y, c ha r g ea bl e t o t a x un d e r t he I n c om e T ax A c t f o r a ny A . Y . co m m e n c i n g o n o r a f t e r 0 1 - 0 4- 2 0 1 7. T h e u nd i s c lo se d i n c o m e d e c la r e d u/ s. 1 9 9 C ( 1 ) sh a l l b e c ha r ge d t o t a x @ 30 % a n d t he s am e s h a ll b e i n c r e a se d b y s u rc ha rg e c a l c ul at e d @ 3 3 % a l ong w i t h p e n a l t y @ 1 0 %. T h e p e r so n m a k i n g d e cl a r at i o n u n d e r su b - s ec t i o n 1 o f s e c t i o n 19 9 C sh a l l d e po si t a n a m o u nt w h i c h sha l l n o t be l e s s t h a n 2 5 % o f u nd i s cl o s e d i nc om e i n t he PM G K Y D e p os i t Sc h e m e 2 01 6 an d t h e s ai d de p o si t sh al l no t b e a r an y i nt e rest t h e r e o f a n d s h a ll b e a l l o we d t o be wi t hd r a w n a f te r 4 y e a r s f ro m t h e d at e o f d e p o si t . 6 . 4. 1 T he s e ct i o n 1 9 9( J ) st at e th at t he d e c l a ra nt un d e r t h i s sc he m e s h a ll n ot b e e n ti t l e d, i n re s p e ct o f u n d i s c l o s e d i nc o m e re f e r r e d t o s e c t i on 1 99 C, o r a n y a m o un t o f t a x a n d s u rc ha rg e p ai d t he re o n, t o r e o p e n a ny a s s e s s m e nt o r re as s e s sm en t m ad e u n d e r t he I n c o m e T ax A c t o r t he We a l t h T ax Ac t 19 57 , o r t o c la i m an y se t of f o r r e l i e f i n a ny ap p e a l , r ef e re n c e o r a ny o t h e r p ro ce e d i n g s i n rel a t io n to a n y a s s e ss m e n t o r r e a s s e s s m e nt . ITA No.32/Del/2020 & CO No.69/Del/2020 8 6 . 4. 2 T h e p ro v i si o n o f s e c t i on 1 99 l st a t e t h at t he a m o u nt o f u nd i s c l o se d i n c o m e d e c l a r e d i n a c c o rd a n c e w i t h s u b-se c t i o n ( 1 ) of s e c t i on 1 9 9 C s h al l no t b e i n cl u d e d i n t h e t o t a l i n co m e of d e c l a ra nt f o r an y A. Y . u nd e r I n c o m e T a x Ac t . 6 . 4. 3 T h e p ro v i si on o f se c t i on 1 9 9 L s t at e th a t " N otw i t h s t an di n g a ny t h i n g c o n t a i n ed i n a n y ot h e r l a w f o r t h e t i m e b ei ng i n f o rc e , n ot h i n g c o nt ai n e d i n a n y de c l ar a t i on m a de u nd e r s ub- s e c t i on ( 1 ) of s e c t i on 1 9 9 C sh al l b e a d m i s s ib l e i n e v i de n c e a g ai n st t he d e c l a ra nt f o r t h e pu r po s e o f a ny p r o c e e d i n g u nd e r a n y A c t o t he r t h a n t he A c t s m e nt i o n e d in se ct i on 19 9 - 0. * T h e S c h e m e p r ov i de s a n o pp o rt u ni t y t o p e r s o n s h av i n g u n di s c l os e d i n c o m e i n t h e f o rm of c a sh o r d e p o si t i n an a c c ou nt m a in t ai n ed w i t h a sp ec i f i e d e n t it y ( wh i c h i n c l u d e s b a n k s, p o s t o f fi c e et c . ) t o d e c la re s uc h i n co m e an d p ay t a x , s u r c h a rg e an d p e n a l t y to t al i n g i n a l l t o 49. 9 p e r ce n t of s u c h d e c l a r e d i n c om e . B e s id e s, t h e S c he m e p ro vi d e s t h a t a m an da t o ry d e po s i t of n o t l e s s t h a n 2 5 % of s u c h i n c om e sh al l be m ad e i n t h e P ra dh a n M a nt ri G a r ib K al y an D e p o si t Sc he m e , 2 0 1 6 h e re i n af t e r ' t h e P M G K Y D e p o si t Sc h em e " ) w hi c h ha s se p a r a t el y b e e n n ot i f i e d b y t h e D e p a rt m e n t o f E c o n om i c A f f ai r s. T h e Sc h e m e h a s c o m m e n c e d o n 1 7 - 1 2- 20 16 a n d s h al l r e m a i n o p e n fo r d e c la r at i o n s / d e p o s i t up t o 31 - 0 3- 20 1 7 . A de c l a ra t io n u n de r t he a f o r e s a i d S ch e m e m ay b e m a d e i n r e s p e c t o f an y in c om e i n t h e f o r m o f c a s h o r d e p o s i t i n a n a c c o un t m a i n t ai n e d b y th e pe r s o n wi t h a s p e c i fi e d e n ti t y , c h a r ge ab l e t o t a x un de r t h e I n c ome T a x A c t f o r a ny A . Y . c o m m e nc i ng o n o r b e f o re 0 1 - 04 - 2 01 7. No d e du c ti o n i n r e s pe c t o f a n y e x pe nd i t u re o r a ll o wa nc e o r s e t - o f f o f a ny l os s s h a ll b e al l o w e d a g a in s t t he i nc o m e i n re s pe c t of w h i c h a va l i d d e c la r at i o n i s m a d e un d e r t h e S c h e m e . 6 . 4. 4 Ce n t r al B o a r d o f D i r ec t T a x h a s i s s u e d a c i r cu l a r n o. 2 dt . 1 8- 0 1 - 2 01 7 a n d c l a r i fi e d i n qu es ti o n n o. 5 t h at " Ca n a pe r so n a ga i n st w ho m a s e a rc h / s ur v e y o pe ra t i o n h as b e e n in it i a t e d , f il e d e c la r at i o n u nd e r t he S c h e m e a nd wh e th e r t he c a sh se i z ed d u ri n g s e a rc h o p e r a t i o n c a n be d e cl a r e d u nd er th e Sc h e m e ? 6 . 4. 5 An s we r: Y e s, a pe r s o n ag ai n s t w ho m a s e a rc h / s u r v e y o pe r a t i o n h a s b ee n i n i t i a t ed is e l i gi b l e t o f i l e d ec l a ra t i o n un de r t h e S c h e m e i n r e sp e c t o f u nd i s cl o se d in c om e re p re s en t e d i n t h e f o rm of c a sh o r d e p o s it i n a n a c c ou n t m a in t ai n e d wit h s p e c i f i e d e n t it y . " 6 . 5 T h e a p p e l l a nt ha s f u l fi l l e d al l th e c o n d i ti o n s sp e c i f i e d i n P ra dh an M a nt ri G a ri b K a ly a n Y oj n a S c h e m e an d h e h a s e nc l o se d c e rt i f i c a t e o f h ol d i n g, su b s c ri pt i on re c e i pt a n d c er t if i c a t e f r o m t he P r. C I T - 1 7 , Ne w D e lh i i n F o rm - 2 h a s be e n i ss u e d i n t h i s r e s pe c t . ” ITA No.32/Del/2020 & CO No.69/Del/2020 9 ITA No.32/Del/2020 & CO No.69/Del/2020 10 ITA No.32/Del/2020 & CO No.69/Del/2020 11 6 . 6 Th e a b ov e f a c t s c l e a r l y r e v e al s th a t t h e as s e s se e h ad d e c l a r e d t he s ai d am o u nt u n de r t h e " P M G K Y " an d n o t ax l i a bl e i s t o c h a r g e a s p e r t h e p r o v i s i on o f i n c om e t ax ac t . Th e A p p e l l an t h as a l r e ad y d e c l ar e d t h e s a m e a m o un t i n h is ba l a nc e s he e t u n d e r t h e h e a d C a p i ta l w hi l e f i l i n g in c o m e t a x r e t ur n fo r th e A . Y . 20 1 7 - 2 0 1 8 . C ons i d e r i n g t he a b ov e f a c ts , A O i s n ot j u s t i f ie d i n m ak i n g a d d i t i on o n a c c ou n t o f c as h d i s c l o s e d u nd e r t h e " P M G K Y" a m o un t i ng t o R s . 5 8, 9 6 , 50 0 / - . E x c e s s c a s h a m o u nt i n g t o R s . 63 , 8 7, 9 12 / - f o u n d d ur in g t h e c o ur s e o f s e ar c h o n t h e p r e m i s e s o f t h e a pp e l l a n t , o u t o f w hi c h h e has d i s c l os e d c as h u n de r P M G K Y a t R s . 5 8, 9 6, 5 0 0/ - o n l y an d no t e x pl a i ne d t he s o u r c e of r e m a in i ng c a s h a m o un t i n g t o R s . 4 , 9 1 , 4 1 2/ - Th us , ad di t i o n m a d e by t h e A O i s s u s t ai n e d t o t he e x t e n t of R s . 4, 9 1 , 4 1 2 / - a nd b al a nc e a d di t i o n m a d e by t h e A O at R s . 5 8 , 9 6 , 5 0 0 / - i s n ot s us t a i na b le a n d i t i s h e r e b y de l e t e d. 6 . 7 In t he r e s ul t o f t hi s g r o u nd i s p ar t l y a l l ow e d.” ITA No.32/Del/2020 & CO No.69/Del/2020 12 5. A gg rieve d b y t he re li ef grant ed b y the CIT (A ), the revenue has fi led the appe al wit h ref er en ce t o relie f g ra nte d on account of exce ss s tock of R s. 2, 25, 53, 159/-. T he Asse ssee ha s als o filed cr oss obj ec tio ns with re ference t o add iti ons ret ai ned of Rs. 4, 91, 412/ - out of e xcess cas h b y th e CIT (A ). 6. With re fe re nce to ta x trea tment of excess stock, t he l d. counse l supported the firs t appe ll ate orde r and su bmi tte d that a surve y ope ration w ere carr ie d out on t he busi ness premi ses of the assessee on 10 t h and 11 t h N ove mbe r, 2016 wh ic h w as late r conve rted into se a rch unde r Secti on 132 of th e A ct. T he wa rr ant of a uthoriz at i on under Sect ion 132 of the A ct w as iss ued in the na me of M/ s. Batr a Jewel le rs, pro pri etor Na veen B atra -ass essee. The l d. counsel referre d t o the financial s tate me nt inc l udi ng P rof it & L oss acc oun t a nd t he re turn of inc ome fil ed to s ubmi t t hat exce ss s toc k of gold and j ew elle r y amount ing to Rs.2, 25, 43,233/- w as dis cove re d i n the course of sea rch of busi ness pre mi ses. The exce ss stock r ep resents or dinar y busi ness in come a nd thus the pro visions of sec t ion 69A was w ro ngl y invoke d by t he AO w hich w as set ri ght b y the C IT (A ). T he l d. counsel sub mi tt ed tha t there is no d isp ute on t he fac t t ha t a mou nt has been dul y declare d i n the re tu rn of in come and o ffe re d to taxat ion as business income suscepti bl e to re gular ra te of t axati on. The A O has, however, invoke d t he provis ions of Sect i on 115B BE r. w . Section 69A of the A ct w hic h is not app licabl e i n the context of the cas e and w as ther ef ore c ontes ted be fore the CIT (A ). T he CI T(A) has appreci ated t he fac ts in fact ua l a nd l egal p er spectiv e a nd obse rve d that t he u naccount ed excess iv e st ock has arisen in t he course of nor ma l busi ness activ it ies ca rrie d out by t he as sesse e and thus ITA No.32/Del/2020 & CO No.69/Del/2020 13 accept ed the plea of the assess ee fo r s uch income to be s usce pt i ble to ta x a t no rmal rate of ta x exclus i on to S ect ion 115B BE of the A ct. The C IT (A ) refe rred t o vari ous j udgments. While h ol di ng t hat suc h exc ess st oc k is liable t o be ta xe d as ‘B usiness Inc ome’ of the assessee and not under 69A of t he A ct under t he he ad ‘ Inc ome fro m O th er So urces’. 6. 1 T he l d. counse l therea fter adve rt ed to the recent de cis ion deli ve re d by H on ’ble Madh ya Prade sh H ig h C our t in the case of PCIT vs. Shr i K r is hn a Kum ar Verm a, 2024 (3 ) TMI 1018 judgm ent date d 19. 03. 2024 to sub mi t that i n the simila r factua l mat rix w her e the assess ee before the H on’ble Madh ya P ra desh H igh Cour t w as a lso en gaged in j ewe lle r y bus in ess, the Hon’ ble H igh Cour t end orse d t he vi ew t hat t he undis close d i nc ome s urre nde re d in the course of s e arch i s de rived f rom regula r b usi nes s activit ies and t he refore, l ia ble to be ta xe d a t norma l rate ins tead of the accelerated ta x rat e appl ic able in terms of Secti on 115BB E of the A ct. 6. 2 T he ld. coun sel ther ea fter ad verte d t o anothe r decisi on re ndered b y the C o- ord inat e Bench i n ITO vs. R am ac handra Sett y & Sons in ITA No. 1163 to 1165/B ang/2023 order dated 10. 06. 20 24 to s uppo rt the ac tion of t he C IT (A ) a nd su bmi tted that in the iden tic al fact s it uatio n, the Co- ord inat e B ench ha s observe d that the st ock s ur rende re d is liab le to be taxed as b usiness inco me a nd not under the head ‘ unexplai ne d i nvest me nt ’ un der the h ea d ‘i nc ome fro m ot he r sour ces ’ un der Section 6 9B of the Act. ITA No.32/Del/2020 & CO No.69/Del/2020 14 6. 3 T he l d. counse l thus submitted t ha t t he p rovisions of S ect ion 69 or 69A or 69B etc. would no t app l y w here the undis cl ose d inco me has arise n fr om o rdi na ry bus iness ac tivit ies. The ld. counse l thus s ub mi tte d th at no fa ul t c an be f ound wit h the or der of the C IT (A) i n t his re gard. 7. A dvert i ng to the Cross O bj ecti on fi led by the asses see, the ld. coun sel submi tte d t hat G rounds No.1, 2, 3 and 4 ar e not pressed and therefor e, ma y be ta ke n as w ithdraw n. Adverting to G roun d N o. 5 of the C ross O bj ecti on, t he l d. counsel su bmi tted that i n t he co urse of search on 11. 11. 2016, an i nc omp le te cas h book w as foun d w he re in cash bala nce w as re flec ted at a ne ga tive fi gur e of R s.4,2 3, 842/-. A sum of Rs. 58, 96, 500/- in cash w as how e ver d et ect ed and se ized from t he premises of the assess ee. The ass essee o ffe re d t he cas h fou nd under ongo ing scheme in Cha pt er -IX A qua ‘Prad han Ma nt ri G ari b Kal ya n Y oj ana, 2016 (PMGK Y ). As pe r th e scheme, the undis closed inco me de cla red w as cha rgeable to tax at a presc ribed ra te w hic h w as p aid o ut of cash se ize d b y t he Depart me nt. The ld. counsel submit ted that w hen t he cas h found amounting t o R s. 58. 96 lakh ha s been o ffe re d for taxa tion, the def icit of R s.4, 23, 842 /- as per cash b ook s houl d not be separatel y s ubj ecte d t o taxat io n se pa ra tel y. T he l d. counsel thus sought s ui table relie f on the issu e. 8. A dvert i ng to G rou nd No. 6 of the C ross O bj ect i on, t he ld. counse l submit ted that as pointed out ea rl ier, cash of Rs. 58, 96,500/- w as seize d b y t he Income T ax D epa rt me nt out of w hich an amount of Rs. 29, 42, 35 4/ - w as appro priate d tow a rds taxat io n on undisc losed c ash of fered und er PM G K Y, the re ma in ing a mou nt of Rs. 29, 54,1 46/ - thus re ma in ed in t he custo dy ITA No.32/Del/2020 & CO No.69/Del/2020 15 of the R evenue. A letter da ted 23 r d March, 2 017 was filed by the A ssessee w i th t he Pr. CIT -17, N ew Delhi reques ting adjust ment and appro pri ation of t he re ma ini ng a mo unt of Rs. 29,54, 146/- agains t the tax li abi lit y l ikel y to arise fo r the asses s ment year re le vant t o F. Y . 20 16-17. T he ld. counse l thus s ubmi tt e d tha t o nce a cl ea r ma nda te has be en given to t he D ep artment t o ena bl e it to adjus t the c ash deposits aga inst t he t ax lia bi li t y, t he afo re sai d amount o f Rs. 29. 54 la kh s houl d be t reate d as tax pai d b y the assessee on that dat e a nd cons equ entl y the i nt erest liabi li t y i n terms of Sect ion 234B ough t not t o have be en levie d up on th e assessee at t ri butab le to t he remaining cas h a mo unt o f Rs. 29. 54 Lacs available wit h the Re venue. The l d. couns el thu s sou ght a di re ct ion to t he Re venue to re -c ompu te t he i nt e res t li abilit y u nder Sect ion 234 B givi ng a ppr opria te re lief on account of deemed ta x pa yme nt to t he e xten t of Rs. 29,5 4, 146/ - l yi ng in the custod y of D epa rt me nt. The ld. counsel fair ly s ubmi t te d i n th e sa me b reat h that there w i ll be no change in the t ax li ab il it y qua Sectio n 2 34C of the A ct. The ld. counse l adve rte d to the dec is ion of the C o- ord inate Be nc h in A run Ba ns al vs. ACIT, ITA N o. 2615/D e l/ 20 22 order date d 29 t h May, 2023 w hile seeking rel ief f rom levy of inte res t unde r S ect io n 234 B of the A ct i n t he simila r ci rc ums ta nces. 9. T he CIT -D R f or t he R evenue j usti fi ed the ac tio n of t he AO to i nvoke pro vis ions of Secti on 115BB E in respect of undis cl ose d exce ss stock found from the premis es of the ass essee at t he ti me of searc h in t his regard. T he ld. C IT -D R adverted to pr ovisi ons of Sect ion 69A of the A ct and submi tt ed t hat Sect ion 69A nowhere dis ti nguis hes betw een undis cl osed mone y, bulli on, or j ew eller y not rec orde d in t he bo oks of account, w hether it arises in the ITA No.32/Del/2020 & CO No.69/Del/2020 16 cours e of busi nes s acti vi ties or otherw ise. Sec ti on 69A gets trigge red as soon as money, bull i on, j ewell er y or val ua ble ar ticles co mes t o the k now ledge of the D e pa rt me nt no t recorded i n the books of acc ount and t he as sessee fa i ls to of fe r exp la na ti on about natu re and s o urce of such ass ets. T he ld. C IT -D R assa ile d relie f gi ve n b y t he C IT (A ) an d contended that the C IT (A ) has mi sdi recte d hi ms elf in not appl yi ng the provis i ons o f the A ct in ri ght pe rsp ect ive and in lett er an d spi rit. The ld. C IT-D R t hus sough t reversal of t he fi rs t appe ll ate or de r on the issue f or res to ra tion of th e acti on of the A O. 10. A s regards G round N o. 6 o f the C ross Object ion ra is ed on behal f of the asses see, the ld. CIT -D R suppo rted t he a cti on o f the CIT (A ). T he l d. CIT -D R p ointed ou t tha t in t erms o f s . 132B of the A ct, there must be an ex ist ing liabi lit y s ubs ist ing o n the reco rds o f t he Re ven ue to enable i t to adj ust the cash amount avail able a t its d ispos al. T he l iabi li t y, i n the present case, has co me into e xis tence onl y af te r f ra ming t he asses sment orde r and ther ef ore, t he ass essee cann ot esca pe the application of Se ct i on 234B for the in te rveni ng peri od. 11. We have ca re ful l y c onsi de re d t he rival s ub mi ss ion s and pe rus ed the firs t app el late or der a nd the a ssessment order. The ma teri al refe rr ed t o and relie d upon i n the c ourse of hear in g as w ell as t he case l aw s refe rre d ha ve been taken i nt o acc ount. 12. T hree iss ues a re involved f or a dj udic at ion in the present appea l. 12. 1 Firs t iss ue invol ves taxabi l it y of undisclos ed excess st ock of ITA No.32/Del/2020 & CO No.69/Del/2020 17 gold a nd j ew ell er y fou nd in t he co urs e o f s ea rc h from t he busines s pre mise s of t he as sessee at Rs. 2, 2 5, 53, 159/-. The ques tions w er e put by the Re venue A ut horit ies be fo re the a ss essee / his re presentat iv e w hile recor ding th e sta tement und er Sect ion 131(1A ) and Sect i on 1 32(4 ) w here s pec i fic quest ions w ere as ked to the assess ee r egarding variat ion in the s tock quan ti t y as pe r the sto ck reg ist e r maintained b y the assess ee in c omp uter. I n res ponse, it w as s ubmit ted by the as sessee bef ore the s ear ch tea m that t hese e xcess s tock has a risen b y wa y o f bus iness t ra nsact ion in w hich the asse ssee w as eng ag ed and the e xcess ive stock is att ributable t o the bus iness of t he ass essee. It w as a ls o po in te d out that assess ee has onl y one so urce of income wh ich is j ew ell er y bus iness c arried out in t he na me and st yl e of B at ra j ew elle rs. The assessee has dul y dec lare d the exc essive s tock in the re turn of inco me as bus iness income. T he A O howe ve r ta xed t he excess iv e sto ck under the s helt e r of Sect ion 69A r. w. Section 115 BBE of the A ct as inc ome fro m ot he r sources. 13. O n appraisa l o f t he fi rs t ap pell ate order, we notice t ha t th e exce ss st oc k w as found fr om t he bus iness pre mis es of the ass essee and o ffe re d as business inc ome. The C IT (A ) refer re d to sever al decisi ons and ca me to t he c oncl us ion that excess s toc k fou nd fro m the busi nes s p re mi ses are a ttri buta ble to t he bus iness in w hic h the assessee is enga ge d is re quired t o be cons i de red as of f-sh oot of bus iness act iviti es and the refore, t he income is requi re d to be trea ted as busi nes s i nco me in o rdi na ry course. T he concl us ion draw n b y t he C IT( A) is i n s ync w i th the fac tu al matrix and st ated legal pos it ion e nunci at ed b y j udic ia l pre cedents. Hence cannot be fa ul te d in l aw . Hence, w e decline t o inte rfere. ITA No.32/Del/2020 & CO No.69/Del/2020 18 14. T he Appeal of t he R evenue is t hus dis misse d. 15. A dvert i ng to the ot her is sue raise d in the C ross O bj ect ion na me ly a dd it ions tow ar ds ex cess ive cas h to t he extent of Rs. 4, 91, 912/ -. It is an ad mi tte d pos it ion t ha t excess ive cash of Rs. 58, 96,500/- w a s fou nd fr om t he bus iness pr emis es of the assessee. Si mu lt aneousl y n egat iv e cash ba lance of Rs . 4, 91,912/- w as show n in the books of acc ount on the date o f surve y / search. The A O made addi ti on s t ow ards excessi ve cash found of Rs. 58, 96,500/- an d als o tow a rds negative cas h balance of Rs. 4, 91, 912/ -. Th e C IT(A ) de let ed th e addit io n of Rs. 58, 96,5 00/ - but de cl ined to gi ve rel ief on ac count of ne ga ti ve ca s h bala nce. 16. We are unable t o see any e rror in t he acti on of the C IT (A ). The ex pl ana t io n f or t re at i ng the excessi ve cas h to th e exte nt of Rs. 58, 96,500/- w a s fo und sati sf ac tory b y t he C IT (A) a nd remains undis puted b y Re venue. H ow ever, the A sses see has faile d t o explain the cas h balance defi cit in t he book s of account . T hus, the de fi ci t i n c ash book ca nno t be merged w it h th e unacc oun te d exce ssive cas h found r igh tl y hel d to t axable separatel y. The a ct ion of t he C IT (A ) t hus cann ot b e fa ul ted. 17. A nothe r gr ie vance of the assess ee as pe r the C ro ss O bj ecti on re la tes to n on-app licabi lit y of i nter es t un der Sec tion 234B of the A ct w ith re ferenc e to surplus c ash found and seized i n the cour se of se ar ch. 17. 1 A s note d above, in t he cour se of hea ring befo re t he T ribuna l, the ass essee ha s adver te d to a letter date d 17. 03. 2017 asking the re ve nue t o adjus t th e s urplus unac cou nted cas h s ei zed to the ITA No.32/Del/2020 & CO No.69/Del/2020 19 extent of R s.29, 54, 14 6/ - (a fter me eti ng ta x l ia bi lit y on cas h seiz ed) aga inst the r eg ular tax li abi li ty fo r the A.Y . 2017-18 i n que st ion. T he cop y of le tt er is reproduce d he reunder: “ N a v e e n B a t r a C / o B a t r a J e w e l l e r s 4 6 , R a n i J h a n s i M a r k e t , K a ro l B a g h , N e w D e l h i - 1 1 0 0 0 5 T h e P r i n c i p a l C o m m i s s i o n e r o f I n c o m e T a x R a n g e 1 7 , E - 2 B l o c k , C i v i c C e n t r e , N e w D e l h i I n R e g : Ba t r a J e w e l l e r s 4 6 , R a n i J h a n s i M a r k e t , K a r o l B a g h , N e w D e l h i - 1 1 0 0 0 5 . P A N N o . A F T P B 6 9 9 5 H S u b : A d j u s t m e n t o f b a l a n c e a m o u n t R s . 2 9 ,5 4 , 1 4 6 / - in p u b l i c d e p o s i t a c c o u n t t o w a r d s t a x l i a b i l i t y R e s p e c t e d S i r , T h e D i r e c t o r o f I n v e s t i g a t i o n , U n i t 3 , h a s t r a n s f er r e d R s . 5 8 ,9 6 ,5 0 0 / - in t h e p u b l i c d e p o s i t a c c o u n t o f P r i n c i p a l C h i e f C o m mi s s i o n e r o f R a n g e 1 7 . T h e A s s e s s e e r e q u e s t s y o u r g o o d s e l f t o d e p o s i t a n a m o u n t o f R 6 . 2 9 , 4 2 ,3 5 4 / - t o w a r d s P r a d h a n M a n t r i G a r i b K a l y a n Y o j n a 2 0 1 6 a n d in t h i s r e s p e c t t h e c h a l l a n a n d c o n s e n t t o d e p o s i t t he s a m e h a s a lr e a d y b e e n p r o v i d e d t o y o u i n a l e t t e r r e c e i v e d b y y o u r g u v a s e i r s o f f i c e o n 0 8 . 0 3 .2 0 1 7 . I n e A s s e s s e e r e q u e s t s y o u r g o o d s e l f t o k i n d l y a p p l y t h e b a l a n c e a m o u n t i . e . R s . 2 9 ,5 4 , 1 4 6 / - a g a i n s t t a x l ia b i l i t y a r i s i n g in r e s p e c t o f F . Y . 2 0 1 6 -2 0 1 7 o r t o m e e t a n y t a x l i a b i li t y a r i s i n g i n o u r n a m e . T h a n k i n g y o u , Y o u r s f a i t h f u l l y N a v e e n B a t r a ( P r o p . – B a t r a J e w e l l e r s P l a c e : N e w D e l h i D a t e : 1 7 . 0 3 . 2 0 1 7 ” 17. 2 T he re pres entatio n made i n th e i mpugned le t te r seeking adjus tment has no t bee n disputed by the Re venue. Therefore, th e af oresaid a mount of 29, 54, 146/ - i s re qui re d t o be treated as ITA No.32/Del/2020 & CO No.69/Del/2020 20 pa yme nt of ta x l iabi li ty ow i ng to the fact that a cate goric al ma ndate w as conferre d on the revenue by a e xpress le tte r b y the assessee. T hus, the l iabi lit y under Sect ion 234B attribut ab le to suc h ta x al read y d ee med to have bee n pa id, coul d not a pp ly i n the ligh t of de cis i on rende red by t he C o- ord inate B enc h i n the c ase of Arun Bans al (supr a). 18. T he a fores ai d iss ue thus is adj udi cated i n favour o f the assessee. 19. Co nseque ntl y, the other gr ounds nam el y G round No. 1 to 4 of Cross O bj ecti on are dis misse d as not presse d w he re as G round N o. 5 tow ards undiscl osed cas h to th e exte nt of R s. 4, 91, 41 2/- is dis mi ssed. 20. G ro und N o. 6 of t he C ross O bj ection relati ng to ch argea bi li t y of inte res t under Sect ion 234B on dee med tax pa yme nt is al low ed as no ted a bove. 21. In the resul t, t he C ross O bjection of th e assesse e is partl y all ow ed. 22. Resul tant l y, t he a ppea l of th e Revenu e is dis missed w he reas Cross O bj ect i on of the assess ee is par tl y allow e d. Order pronounced in the open Court on 14 th August, 2024. Sd/- Sd/- [YOGESH KUMAR] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: August, 2024 Prabhat