SIMRITA KAUR,RAJPURA V. ACIT, PATIALA

ITA 405/CHANDI/2024

AI Insights

The case involves Dr. Simrita Kaur, who runs a nursing home and declared additional income during a survey under section 133A of the Income Tax Act. This additional income was initially assessed as income from undisclosed sources under section 69A, leading to higher tax rates. The Tribunal examined whether this additional income should be considered as business income, as declared by the assessee, or as income from undisclosed sources. The Tribunal's decision was based on the interpretation of the source of the income rather than its usage, concluding that the additional income was indeed part of the normal business income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 30378 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Other Referred Cases: Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987; (2) TMI 61 SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANBIR KAUR LD.
• Assessee Lawyers: PARIKSHIT AGGARWAL LD
• Keywords: Business income; Gift
• Section: 143(3); 13; 69A; 133A

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.405/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2018-19) Dr. Simrita Kaur 69, Dalima Vihar Rajpura-140401 बनाम/ Vs. ACIT Patiala, Punjab. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ABYPK-2113-R (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Parikshit Aggarwal (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr. Ranbir Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 01-04-2025 घोषणाकीतारीख /Date of Pronouncement : 04-04-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 09-12-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 21-09-2021. The short issue to be adjudicated by us to determine the head of additional income as surrendered by the assessee during survey proceedings. The assessee is stated to be running a nursing home in the name and style of M/s Simrita Nursing Home, Rajpura. The registry has noted 2 delay of 432 days in the appeal which stand condoned keeping in mind the guiding principles laid down by Hon’ble Apex Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987; (2) TMI 61 SC). 2. Pursuant to survey u/s 133A on the assessee on 20-07-2017 at assessee’s premises, the assessee declared additional income to make up for deficiencies and honoring the same, offered additional income of Rs.25 Lacs in her return of income as filed on 09-10-2018. The same was offered as business income. The additional income was offered to make up for excess cash, construction expenditure and gifts as stated to be made by the assessee. However, Ld. AO rejected the same and assessed additional income u/s 69A which would be taxable at higher rates as specified u/s 115BBE. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. 3. From the computation of income, it clearly emerges that the substantial source of income for the assessee is business income only. The statement as recorded from the assessee during survey has been placed on Page Nos. 31 to 37 of the paper-book. Upon perusal of replies to Q. Nos.12, 13 and 14, it could be seen that the additional income has been offered over and above the normal business profits only but not out of unknown sources. The usage of additional income, in our considered opinion, is not a relevant factor but it is the source which is relevant factor to determine the head of income. On these facts, the assessee’s claim is to be accepted. The Ld. AO is directed to accept the additional income as normal business income only. 3 4. The appeal stand allowed in terms of our above order. Order pronounced on 04-04-2025. Sd/- sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT लेखा सद˟ /ACCOUNTANT MEMBER Dated 04-04-2025. आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH "