Topic
ITAT Jaipur rules that unexplained cash can be fully telescoped against unrecorded sales, deleting Rs.8.67L addition, and deletes Rs.15.52L addition for cash loans based on dumb documents.
ITAT Delhi holds that the enhanced tax rate under Section 115BBE of the Income Tax Act applies only from Assessment Year 2018-19 onwards, directing normal tax rates for surrendered income in AY 2017-18. The ruling clarifies the prospective applicability of the provision, impacting tax assessments for undisclosed income surrendered during survey proceedings.
The ITAT Dehradun has ruled that when a business voluntarily discloses excess stock as part of its declared business income during a survey under Section 133A, it cannot be later reclassified as unexplained investment under Section 69A and taxed at the punitive rate of 60% under Section 115BBE. This protects legitimate traders from arbitrary reclassification and reinforces that disclosure in good faith during survey proceedings must be treated as business income, not hidden wealth.