SH. SUKHDEV SINGH BAJWA,MOHALI V. DCIT, CC-1, CHANDIGARH

ITA 244/CHANDI/2023

AI Insights

The case involves Shri Sukhdev Singh Bajwa, who appealed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2015-16. The primary contention was regarding the application of a higher tax rate under Section 115BBE on a declared income of Rs.1,58,333. The Income Tax Department had conducted a search under Section 132(1) at the premises associated with M/s Bajwa Group, which included the assessee. Post-search, the assessee declared his income in response to a notice under Section 153A, but contested the application of Section 115BBE, arguing that the income was from regular business activities and not undisclosed. The Tribunal found that the Assessing Officer (AO) did not provide sufficient evidence to classify the income as unexplained or undisclosed, leading to the decision to tax it at the regular rate.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298521 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Assessee Lawyers: SUDHIR SEHGAL
• Section: 132

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 244/CHD/2023 नधा\u0011रण वष\u0011 / Assessment Year: 2015-16 Shri Sukhdev Singh Bajwa, House No.1002, SAS Nagar, Mohali. Vs The DCIT, CC- 1, Chandigarh. \u0016थायी लेखा सं./PAN NO: CCZPB7718M अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Shri Sudhir Sehgal, Advocate Revenue by : Smt. Kusum Bansal, CIT, DR Date of Hearing : 27.03.2025 Date of Pronouncement : 22.04.2025 HYBRID HEARING O R D E R PER RAJPAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 26.02.2023 passed for assessment year 2015-16. 2. The assessee has taken four grounds of appeal out of which Ground No. 3 and 4 are general grounds and they do not call for recording of any finding. ITA No.244/CHD/2023 A.Y.2015-16 2 3. In Ground No. 2, the assessee has pleaded that approval granted under Section 153D is not in consonance with the provisions of law, hence, impugned assessment order is not sustainable. This ground was not addressed by the ld. Counsel for the assessee, hence rejected. 4. In Ground No. 1, assessee has pleaded that ld. AO has erred in charging of tax under Section 115BBE on a sum of Rs.1,58,333/-. 5. With the assistance of ld. Representative, we have gone through the record carefully. A perusal of the record would indicate that a search was carried out under Section 132(1) on the business and residential premises of M/s Bajwa Group of cases. Shri Sukhdev Singh Bajwa was one of the persons covered under Section 132 of the Income Tax Act. In response to the notice issued under Section 153A, assessee has filed his return of income declaring total income at Rs.2,25,000/-. There was no incriminating material found at the premises of the assessee, no separate addition was made. The AO has observed that out of the total income declared by the assessee, Rs.66,666/- was ITA No.244/CHD/2023 A.Y.2015-16 3 alleged to be received from Bajwa Developers Ltd. He did not dispute this amount but rest of the amount was treated as unexplained income of the assessee upon whom, Income Tax is being levied at a higher rate under Section 115BBE of the Income Tax Act. 6. On due consideration of the above facts and circumstances, we are of the view that AO failed to demonstrate as to how it is an unexplained income. It is an income offered by the assessee. The AO was unable to made any addition on the basis of any incriminating material found during the course of search. According to the assessee, it is an income from his regular source of business which has been offered for taxation. Now it is for the AO to demonstrate as to how this income is required to be assessed as undisclosed income for the purpose of a search assessment under Section 153A, but nothing has been done by the AO. Therefore, no higher rate of tax under Section 115BBE is to be applied on this income offered by the assessee himself. ITA No.244/CHD/2023 A.Y.2015-16 4 7. Accordingly, appeal of the assessee is allowed and charging of tax under Section 115BBE on the alleged declared income is deleted. This income be assessed under the regular rate of tax. 8. In view of the above, appeal is allowed. Order pronounced on 22.04.2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "