DCIT, CC-1, Ludhiana V. M/s Bhai Industries Pvt. Ltd., Moga

ITA 257/CHANDI/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 4519 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-12-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 30-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Income from undisclosed sources
• Section: 250; 13

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “A” CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.257/CHANDI/2023 Ǔनधा[रण वष[ / Assessment Year : 2018-19 DCIT, Central Circle-1, Ludhiana बनाम M/s Bhai Industries Pvt. Ltd. 7 th Mile Stone, Ludhiana Road, GT Road, Moga, Punjab- 142001. èथायी लेखा सं./PAN NO: AABCB5965B अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राजèव कȧ ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR स ु नवाई कȧ तारȣख/Date of Hearing : 19.12.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 22.12.2023 आदेश/ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the revenue against the order dated 13.02.2023 of the Commissioner of Income Tax (Appeals)-5, Ludhiana [hereinafter referred to as the ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The short issue involved in this appeal is as to whether the income surrendered by the assessee is to be subjected to normal tax or to higher rate of tax invoking the provisions of section 115BBE of the Act? ITA No.257/CHANDI/2023 Assessment Year : 2018-19 M/s Bhai Industries Pvt. Ltd. Page 2 of 3 3. The brief facts of the case are that a survey action was carried out at the premises of the assessee during which the stock of the assessee was found less than that was noted in the books of account. On being asked to explain in this respect, the assessee admitted undisclosed sales. 4. During the course of survey, statement of the assessee was recorded which has been reproduced at pages 11 to 13 of the impugned order of the CIT(A). A perusal of the above statement of the assessee would reveal that the assessee was specifically asked by the survey party about the deficiency in stock regarding which the assessee has categorically submitted that the difference in stock was on account of unrecorded sales made and the assessee produced period-wise details of such sales made. The survey party also noticed that GP rate of the assessee was 9.02% and accordingly the survey party asked the assessee as to why not the profit of the unaccounted sales should not calculate at such rate. The assessee accepted the same and offered Rs.1,06,50,000/- as his business income on account of undisclosed profits. The assessee has categorically offered the said amount as his business income. The ld. CIT(A) considering the above facts has held that the said income offered by the assessee cannot be said to be from undisclosed sources. He, therefore, held that the provisions of section 115BBE were not attracted in this case. 5. We have heard the rival contentions and gone through the record. The facts of the case itself suggest that the ITA No.257/CHANDI/2023 Assessment Year : 2018-19 M/s Bhai Industries Pvt. Ltd. Page 3 of 3 income was offered by the assessee on account of undisclosed profit on sales. The assessee has categorically offered the said profits as his business income. Even the survey party has also got the surrendered amount on account of undisclosed profits and also at the rate on which the assessee has offered profit on other sales. So, under the circumstances, the ld. CIT(A) rightly held that it was not income from undisclosed sources, rather, it was a business income of the assessee. We, therefore, do not find any infirmity in the order of the CIT(A) and the same is hereby upheld. The appeal of the revenue is hereby dismissed 6. In the result, the appeal of the revenue stands dismissed. Order pronounced in the Open Court on 22 nd December, 2023. Sd/- Sd/- ( VIKRAM SINGH YADAV) लेखा सदèय/ Accountant Member ( SANJAY GARG) ÛयाǓयक सदèय/ Judicial Member Dated: 22.12.2023. RS आदेशकȧĤǓतͧलͪपअĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar