Assessee appeals that the Ld. CIT(A) has erred in law and facts of the case by upholding the taxation of income surrendered u/s 1115BBE

This appeal concerns the taxation of surrendered income under Section 115BBE of the Income Tax Act. The assessee argues that the Commissioner of Income Tax (Appeals) erred by upholding the higher tax rate, as the surrendered income was declared under 'Income from business or profession' and did not fall under specific sections like 68, 69, 69A, 69B, 69C, or 69D. The assessee contends that the income should be taxed at the normal business income rate.

IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH, “A” CHANDIGARH

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

ITA No. 1127/C HD /2019
Assessment Year : 2017-18

M/s Bajaj Sons Ltd.
C-103, Phase-v, Focal Point,
Ludhiana.
PAN NO: AAACB6875H
Appellant

Vs.

The DCIT,
Central Circle-III,
Ludhiana.
Respondent
Hearing through video Conferencing

Assessee by : Shri Sarbjit Garg, CA
Revenue by : Smt. C. Chandra Kanta, CIT

Date of Hearing : 10.03.2021
Date of Pronouncement : 24.05.2021

Per Sanjay Garg , Judicial Member: 

The present appeal has been preferred by the assessee gainst the order dated 27.05.2019 of the Commissioner of Income Tax (Appeals)-5, Ludhiana [hereinafter referred to as ‘CIT(A)’].

2. In this appeal the assessee has taken following grounds of appeal:-

“1. A) That the Ld. CIT(A) has erred in law and facts of the case by upholding the taxation of income surrendered u/s 1115BBE, despite the fact that it did not fall u/s 68, section 69, Section 69A, section 69B, Section 69C or section 69Dand was reflected under the head ‘ Income from business or profession’ in the return of income filed by the assessee.

b) That the Ld. CIT(A) has erred in law and facts of the case by upholding the taxation of income surrendered u/s 1115BBE, despite the fact that it has not be assessed by the Ld. AO u/s 68, section 69, Section 69A, section 69B, Section 69C or section 69D

c) The assessee craves right to take any other ground at the time of hearing or to amend/alter/delete any of the grounds of appeals..

2. The assessee through the above ground of appeal has agitated the action of the lower authorities in invoking the provision of Section 115BBE of the Income Tax Act on the surrendered income of Rs. 15 lacs and thereby assessing the said income at a higher rate as against the normal rate of taxation applicable to business income.

3. The brief facts relevant to the issue are that a search & seizure action was carried out at the premises of the assessee as well as the residential premises of its Directors which was concluded on 30.01.2017.

4. During the search operation, statement of Shri Surinder Pal Bajaj, the Director of the assessee, Bajaj Sons Ltd. 

To know more in details find the attachment file