Is unexplained surrendered income taxed at a higher rate u/s 115BBE?

This Income Tax Appellate Tribunal case concerns a doctor who surrendered Rs. 50 lakhs following a survey at his business premises. While the assessee argued the surrendered income was from his medical profession and paid advance tax at normal rates, the tribunal agreed with the Principal CIT. They found the Assessing Officer had accepted the surrender without sufficient inquiry, despite the survey materials not clarifying the income's nature and the assessee offering no explanation.

IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH ‘A’, CHANDIGARH

BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER

ITA No.59/Chd/2021

Assessment Year : 2017-18

Sh.Krishan Gopal Singla Prop.
M/s Singla Surgical Hospital,
Mehal Mubark,
Sangrur

vs

Sh.Krishan Gopal Singla Prop.
M/s Singla Surgical Hospital,
Mehal Mubark,
Sangrur

 Assessee by : Shri Sudhir Sehgal, Adv.

Revenue by : Smt.C.Chandrakanta, CIT

Date of Hearing : 26.08.2021

Date of Pronouncement : 04.10.2021
(Hearing through webex)

ORDER

The brief facts relat ing to the case are that the  assessee is a Doctor by profession. That during the impugned assessment year a survey u/s 133A of the Act was conducted on his business premises on 30.08.2016. In consequence to the discrepancies found by the survey team the assessee surrendered a total amount of Rs.50lacs.

2. The primary content ion of the Ld.Counsel for the assessee whi le chal lenging the findings of the Ld.Pr.CIT, was
that the documents and material found during survey revealed the source of the surrender made as being from the
medical profession of the assessee itsel f and the AO having applied his mind to i t and also to the submissions of the
assessee before him, had right ly formed the view that the surrendered income related to the profession of the assessee
and assessed it as such. That the AO had also noted that the assessee had paid advance tax at normal tax rates.

3. In view of the above, we are in agreement with the Ld. Pr.CIT that the AO had accepted the surrendered income of
the assessee as being from the business or profession without making any enquiries regarding the same despite
the fact that the documents/material found during search did not reveal the nature of the income at al l and no
explanation was of fered by the assessee during assessment proceedings, nor in the statement recorded during search.

4. In the result , the appeal of the assessee is dismissed.
Order pronounced on 4th October, 2021.

Please find attached the enclosed file for the full judgement