Shraddha Institute of Career Development Private Limited, Ichalkaranji V. Assistant Commissioner of Income Tax, Central Circle-Kolhapur, Kolhapur

ITA 352/PUN/2023

AI Insights

The case involves Shraddha Institute of Career Development Private Limited, which appealed against the order of the CIT(A)-11, Pune, concerning the assessment year 2019-20. The core issue was the taxability of income declared during a survey under section 115BBE of the Income Tax Act. During the survey on 27-10-2018, the assessee admitted to under-recording receipts from coaching classes amounting to Rs.2,25,000, which was used for purchasing computers not recorded in the books. The AO treated this income under section 69 and taxed it at a higher rate under section 115BBE, a decision which was affirmed by the CIT(A) and contested by the assessee at the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124122 (ITAT-PUNE)
• Duration Of Justice: 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 19-04-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 28-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.352/PUN/2023 नधा रण वष / Assessment Years : 2019-20 Shraddha Institute of Career Development Private Limited, 6, Near Recreation Hall, Sutar Mala, Ichalkaranji, Maharashtra – 416 115 PAN : AAQCS5593K Vs. ACIT, Central Circle, Kolhapur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order dated 15-03-2023 passed by the CIT(A)-11, Pune in relation to the assessment year 2019-20. 2. The only issue raised in this appeal is against the taxability of income offered during the course of survey u/s.115BBE of the Act. 3. Succinctly, the facts of the case are that the assessee was subjected to survey on 27-10-2018. During the course of survey proceedings, the assessee declared income in respect of under recording of receipts from coaching classes at Rs.2,25,000/- in Assessee by Shri Pramod Shingte Revenue by Shri Ganesh B. Budruk Date of hearing 20-04-2023 Date of pronouncement 21-04-2023 ITA No.352/PUN/2023 Shraddha Institute of Career Development Private Limited 2 respect of investment in computers, which was offered for taxation at regular rate. The AO treated it as an income falling u/s 69 of the Act and hence charged it at a higher rate u/s 115BBE of the Act. The CIT(A) affirmed the decision of the AO, against which the assessee has come up in appeal before the Tribunal. 4. Having heard the rival submissions and gone through the relevant material on record, it is seen that the assessee admitted during the course of survey that the income of Rs.2,25,000/- was “in respect of under recoding of receipts from coaching classes” which was utilized for purchase of computers outside the books of account. In such circumstances, it becomes clear that such income falls u/s.69 of the Act as has been held by the AO. Section 115BBE of the Act states that where the total income of an assessee includes any income referred to, inter alia, in section 69, the income-tax shall be payable at such income @ 60%. Since the income offered by the assessee towards under recording of receipts and the consequential investment in computer falls within the domain of section 69, I hold that it was rightly taxed u/s.115BBE of the Act. ITA No.352/PUN/2023 Shraddha Institute of Career Development Private Limited 3 5. In the result, the appeal is dismissed. Order pronounced in the Open Court on 21 st April, 2023. Sd/- ( R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 21 st April, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT(Central), Pune DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.352/PUN/2023 Shraddha Institute of Career Development Private Limited 4 Date 1. Draft dictated on 20-04-2023 Sr.PS 2. Draft placed before author 21-04-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *