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ITAT Delhi: Pre-April 2017 Surrendered Income Taxable Under Normal Provisions, Not Section 115BBE

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Summary

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  • The Delhi ITAT has directed that income surrendered during a survey in August 2016 should be taxed under normal provisions, not the enhanced 60% rate under Section 115BBE.
  • Suresh Kumar, proprietor of Shiv Shakti Trading Co., had surrendered ₹50.20 lakh during a survey, but the Assessing Officer initially applied the higher tax rate based on subsequent amendments.
  • The Tribunal relied on precedents from the Madras High Court and a coordinate Bench decision, emphasizing that the applicable tax rate should reflect the time of the transaction.
  • This ruling could significantly impact how similar cases are assessed, particularly regarding income linked to transactions predating April 2017.

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