Rajender Kumar vs Income Tax Officer

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 22.09.2025, for Assessment Year 2017-18.

The assessee in appeal has assailed the addition of Rs.34,00,600/- u/s.69/69A r.w.s. 115BBE of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

A survey u/s.133A of the Act was conducted at the business premises of the assessee on 17.08.2016. Consequent to survey the assessee offered additional income amounting to Rs.34,00,600/- in his return of income under the head ‘Income from Other sources’. The Assessing Officer (AO) proposed to tax additional income offered by the assessee u/s.68/69 r.w.s 115BBE of the Act. The assessee did not object to the same. Accordingly, the AO vide order dated 22.12.2019 made addition of aforesaid amount u/s.69/69A r.w.s 115BBE of the Act. The assessee filed appeal before the said assessment order but remained unsuccessful. Hence, the present appeal.

Both sides heard, orders of the authorities below examined. Considering facts of the case, I see no infirmity in the impugned order in confirming addition u/s.69/69A of the Act. However, in respect of rate of tax u/s.115BBE of the Act, I find that now the issue is squarely covered by the decision of Hon'ble Madras High Court in the case of SMILE Microfinance Ltd. vs. ACIT, WP (MD) No.2078 of 2022 decided on 19.11.2024 holding that amendment to section 115BBE of the Act would come into effect from 01.04.2017 i.e. relevant to AY 2018-19 onwards. Thus, in the impugned assessment year un-amended provisions of section 115BBE of the Act would apply.

In the result, appeal of the assessee is partly allowed in the terms aforesaid.

Order pronounced in the open court on Monday the 16^th day of March, 2026.