PRINCIPAL COMMISSIONER OF INCOME TAX Vs. DHARTI ESTATE

JUDGEMENT

(1.) By this Tax Appeal under Sec. 260A of the Income Tax Act, 1961 (for short 'the Act'), the appellant revenue has proposed the following questions of law arising out of the order dtd. 13/7/2022 passed by the Income Tax Appellate Tribunal, Rajkot (for short 'the Tribunal') in ITA No.92/RJT/2020 for Assessment Year 2015-16.

(2.) Brief facts of the case are as under.

(3.) As observed by the Tribunal, the Assessing Officer has made sufficient inquiry and as such during the course of regular assessment under Sec. 143(3) of the Act, by assessing the income of Rs.41.78 lakhs which included the income surrendered pursuant to the search of Rs.22.19 lakhs as current year's business income offered to tax by charging tax and interest at normal rates and raised new demand. Notice was also issued by the Assessing Officer under Sec. 154 of the Act on the ground that the tax rate on the surrendered income was to be charged as per Sec. 115BBE, however it was found that there was nothing stated in either pre-amended or post-amended provision of Sec. 115BBE that when the assessee surrendered undisclosed income during the search action for the relevant years, higher tax rate is required to be charged.