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August 2026

The enhanced rate of 60% under section 115BBE is applicable only from AY 2018-19. Consequently, during the AY 2017-18, in respect of the professional receipts surrendered in the course of survey, the AO could not have applied the enhanced rate.

By Jagdish T Punjabi, Chartered Accountant Devendra Jain & Aditya Bhatt, Advocates
Reading Time 2 mins

35. 2026(6) TMI 1328 – ITAT - Agra

Vikas Chandra Mittal v. ACIT

A.Y.: 2017-18 Date of Order : 24.6.2026

Section: 115BBE

The enhanced rate of 60% under section 115BBE is applicable only from AY 2018-19. Consequently, during the AY 2017-18, in respect of the professional receipts surrendered in the course of survey, the AO could not have applied the enhanced rate.

FACTS

During the survey action conducted u/s 133A of the Act at the business premises of the assessee on 31.08.2016, the assessee surrendered Rs. 20,00,000/- out of professional receipts said to have been invested in building construction. The Assessing Officer (AO) subjected this amount to tax under the provisions of section 115BBE @ 60% as against the normal rate of tax @ 30% paid by the assessee and added to the income of the assessee.

Aggrieved, the assessee preferred an appeal to the CIT(A) which was dismissed.

Aggrieved, the assessee preferred an appeal to the Tribunal where it relied upon the order of the Madras High Court in W.P (MD) No.2078/2020 and WMP (MD) No. 1742/2020 in S.M.I.L.E

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