Whether excess stock found in survey relatable to business of assessee is taxable u/s 115BBE?

Link of full case : https://taxlawsonline.com/agtlol.html... [2025] 121 ITR (Trib) 130 Chandigarh A Bench Amarjit & Sons V Deputy Commissioner of Income-tax Vikram Singh Yadav (AM) & Paresh M. Joshi (J.M) 21.11.2024 Playlist: 69B, 115BBE 69B: Amount of investments, etc, not fully disclosed in books of accounts 115BBE: Tax on income referred to in section 68 or section 69 or section 69A, or section 69B or section 69C or section 69D A.Y. 2019-20 / Assessee Question: Whether excess stock found in survey relatable to business of assessee is taxable u/s 115BBE? 1. A survey u/s 133A was conducted on the business premises of the assessee in which the assessee admitted to holding some excess stock. 2. Subsequently, a return filed including this income which was offered to tax as business income. 3. A.O. has alleged that the assessee had not given details of the persons from whom excess stock was purchased & bills and vouchers were not recorded in the regular books of accounts. 4. The A.O. thus held that the sources of investment in the excess stock remain unsubstantiated and unexplained & invoked the provisions of section 69B to levy tax u/s 115BBE. 5. CIT(A) upheld the additions. 6. On further appeal it was held that it was an admitted fact that the surrender on account of excess stock was of regular stock in which the assessee dealt and was thus related to the business being carried on by the assessee. 7. Such stock was not physically distinguishable and there was as such no physical distinction between the accounted stock and the unaccounted stock. 8. The difference in stock so found had no independent identity and was in terms of value only, was evident from the surrender letter, which was the basis of findings of A.O. 9. Such stock was part and parcel of the entire stock. 10. It could not be said that the assessee has an undisclosed asset which existed independently. 11. What was not declared to the Department was a receipt from the business of the assessee and was not any investment as it could not be correlated with any specific asset. 12. The amount representing the excess stock found in the survey could not thus be brought to tax under the deeming provisions of section 69B and was to be assessed to tax as income & hence section 1155BBE not applicable. #AmarjitSons #Chandigarh #ITAT #21November #2024 #Section69B #Section115BBE #Survey #IncomeTaxNotices #IncomeTaxCases #incometaxcasesanalysis #IncomeTaxLaw #advocateamitkumargupta #9811291390(Call only after taking time on whatsApp) #[email protected] #[email protected] Link for some important videos: 1) WHETHER TRIBUNAL CAN REMAND MATTER IN ENTIRETY WHERE DEPARTMENT DID NOT FILE CROSS APPEALS?- https://www.youtube.com/watch?v=gkqMk... 2) WHETHER ASSESSEE HAS ALSO TO CHALLENGE THE FINDINGS OF THE A.O THAT NOTICE HAS BEEN SERVED?- https://www.youtube.com/watch?v=XbZWh... 3) WHETHER EXTENDED TIME LIMIT U/S 149(1)(b) CAN BE USED ON THE BASIS OF SALES CONSIDERATION U/S 48?- https://www.youtube.com/watch?v=WuRt9... 4) WHETHER NOTICE SENT TO SECONDARY EMAIL IS VALID IF NOT SENT TO PRIMARY E-MAIL U/S 148?- https://www.youtube.com/watch?v=aAzHE... 5) WHETHER ENTRIES IN BOOKS OF ACCOUNTS CONCLUSIVE TO DETERMINE TAXABLE INCOME OF ASSESSEE?- https://www.youtube.com/watch?v=Rx8JQ...