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Tax Publishers Tax rates as interim amended section or tax rates as applicable for the said Assessment year - Revision under section 115BBE *Facts:* Consequent to a survey assessee agreed with undisclosed cash/income of 40 lakhs which was assessed at 30% in a scrutiny assessment. PCIT invoked his powers under section 263 and reopened the assessment citing that the said income should have been taxed at 60% under section 115BBE and not at 30% thus constitutes as an order prejudicial to the interests of the revenue. Plea of the assessee were - The income partakes the character of the same tinge from where it emanates thus was business income and the survey was done before the amendment to section 115BBE was enacted (the amendment was made in the middle of the year) so the income ought to be taxed only at 30% and not at 60% under section 115BBE. *On appeal:* Held in favour of the assessee that the PCIT's revision lacks characteristics to be called as an order prejudicial to the interests of the revenue. On this ground the PCIT revision was cancelled. The Rates will be as applicable as on the first day of the assessment year, so the ad interim amended rates under section 115BBE will still continue to apply irrespective of the fact that the rates got changed from 30% to 60%. Since the revision was quashed this did not come to the foreground. *Dissented:* DCIT v. Punjab Retail Pvt. Ltd. [ITA no. 677/Ind/2019 order dated 08-10-2021] : 2021 TaxPub(DT) 6394 (Ind-Trib) *Distinguished:* CIT v. Vatika Township Private Limited, (2014) 367 ITR 466 (SC) : 2014 TaxPub(DT) 3934 (SC) *Case:* Hema Raman v. Pr. CIT 2023 TaxPub(DT) 2549 (Del-Trib)

Tax Publishers

Tax rates as interim amended section or tax rates as applicable for the said Assessment year - Revision under section 115BBE

Facts:

Consequent to a survey assessee agreed with undisclosed cash/income of 40 lakhs which was assessed at 30% in a scrutiny assessment. PCIT invoked his powers under section 263 and reopened the assessment citing that the said income should have been taxed at 60% under section 115BBE and not at 30% thus constitutes as an order prejudicial to the interests of the revenue. Plea of the assessee were -

The income partakes the character of the same tinge from where it emanates thus was business income and the survey was done before the amendment to section 115BBE was enacted (the amendment was made in the middle of the year) so the income ought to be taxed only at 30% and not at 60% under section 115BBE.

On appeal:

Held in favour of the assessee that the PCIT's revision lacks characteristics to be called as an order prejudicial to the interests of the revenue. On this ground the PCIT revision was cancelled.

The Rates will be as applicable as on the first day of the assessment year, so the ad interim amended rates under section 115BBE will still continue to apply irrespective of the fact that the rates got changed from 30% to 60%. Since the revision was quashed this did not come to the foreground.

Dissented:

DCIT v. Punjab Retail Pvt. Ltd. [ITA no. 677/Ind/2019 order dated 08-10-2021] : 2021 TaxPub(DT) 6394 (Ind-Trib)

Distinguished:

CIT v. Vatika Township Private Limited, (2014) 367 ITR 466 (SC) : 2014 TaxPub(DT) 3934 (SC)

Case: Hema Raman v. Pr. CIT 2023 TaxPub(DT) 2549 (Del-Trib)