Section 115 BBE & Section 68 A Brahmastra with Assessing Officer The Assessing Officers (AO) seem to have been given a powerful weapon by the Income Tax Act which they can use at their behest in cases where they are of the view that the explanation provided by the assessee is not satisfactory. Section 115BBE comes into effect when income is treated as unexplained u/s 68-69D of Act in opinion of Assesing officer (AO). Interestingly, the flat rate was enhanced to deplorable tax rate of 60% from the acceptable tax rate of 30% in the very post-demonetisation period i.e. December 2016 and was made retrospective from 1st April 2016. It implies that, if any assessee declares the income or who has agreed to surrender income under the aforesaid sections in survey taken place prior to 15-12-2016 on the premise and belief that the tax rate is 30% would end up paying 60% (+ 25% surcharge + cess) as a result of the subsequent amendment, which operated in a retroactive man...
by CA Mohit Mundhada