S. 69B & S.69C additions on Survey- Declared Income not-sustainable: ITAT upholds Business Income Treatment [Read Order]
The tribunal observed that the Revenue accepted the income for one year and cannot take a different view for the next assessment year
![S. 69B & S.69C additions on Survey- Declared Income not-sustainable: ITAT upholds Business Income Treatment [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/additions-on-Survey-additions-on-Survey-Declared-Survey-Income-Not-sustainable-ITAT-ITAT-upholds-Business-Income-Treatment-taxscan.jpg "S. 69B & S.69C additions on Survey- Declared Income not-sustainable: ITAT upholds Business Income Treatment [Read Order]")
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) ruled that the additions made by the Assessing Officer (AO) under Sections 69B and 69C were not sustainable and upheld the estimate of the business income. Sharad Anandrao Deore (assessee), a government contractor, had filed his income tax return for Assessment Year (AY) 2018-19, declaring a total income of Rs. 49,61,890....
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) ruled that the additions made by the Assessing Officer (AO) under Sections 69B and 69C were not sustainable and upheld the estimate of the business income.
Sharad Anandrao Deore (assessee), a government contractor, had filed his income tax return for Assessment Year (AY) 2018-19, declaring a total income of Rs. 49,61,890. During scrutiny, the AO found that the assessee declared an additional income of Rs. 3,52,40,780/-.
The AO added several income as deemed income which included Unregistered Dealer Purchase, Asphalt Transportation, repair and maintenance, and labour payments. Therefore, the AO made additions under sections 69B and 69C of the Income Tax Act.
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Aggrieved by the order of the AO, the assessee appealed before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) held that the amount cannot be taxed as deemed income. The CIT(A) directed to treat the income as business income and further directed to tax at normal rate.
Aggrieved by the decision of the CIT(A), the Revenue filed an appeal before ITAT. The counsel for the revenue argued that merely because the assessee paid taxes at normal rate which had been accepted by the AO, it cannot be followed for the present Assessment Year.
On the other hand, the counsel for the assessee argued that the revenue had accepted the income declared by the assessee in the Assessment Year 2017-2018. The Counsel also highlighted that the stand cannot be changed in the subsequent year.
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The two-member bench, comprising Shri R. K. Panda (Vice President) and Shri Vinay Bhamore (Judicial Member) observed that the assessee has admitted additional income on account of payments which the assessee declared in the Assessment Year 2017-2018 as well as 2018-2019.
The tribunal also observed that the Revenue accepted the income for one year and cannot take a different view for the next assessment year. Therefore, the tribunal upheld the findings of the CIT(A).
Therefore, the tribunal reaffirmed the order of the CIT(A) for the treatment of declared income as business income. Thereby the appeal of the revenue was dismissed.
To Read the full text of the Order CLICK HERE
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