LILARAN AND SONS PRIVATE LIMITED,KATNI vs. ACIT CENTRAL CIRCLE, JABALPUR

ITA 67/JAB/2025Status: DisposedITAT Jabalpur20 August 2026AY 2020-218 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO was not justified in invoking Section 115BBE as the surrendered income, arising from excess stock, should be treated as business income. Therefore, normal tax rates should apply.

What were the facts?

During a survey, the assessee voluntarily offered excess stock and cash as undisclosed income. The Assessing Officer (AO) accepted the return but applied Section 115BBE for higher taxation on the surrendered income.

What were the issues?

Whether the AO was justified in applying Section 115BBE to income surrendered as excess stock, and if such income should be treated as business income or deemed income.

Which sections of the Income-tax Act were involved?

Section 115BBE,Section 69,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JABALPUR BENCH “SMC”, JABALPUR

Before: SHRI KUL BHARAT

For Appellant: Shri Sapan Usrethe, Advocate
For Respondent: Shri N. M. Prasad, Sr. CIT(DR) - 1

PER KUL BHARAT, VICE PRESIDENT.:

This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)-3, Raipur dated 28.01.2025 pertaining to the assessment year 2020-21. The assessee has raised the following grounds of appeal: -

“1. The learned Commissioner of Income tax (Appeal) Raipur - 3 was not justified in dismissing the appeal even though he have no Juri iction to pass the order as the appellant have filed the appeal before Commissioner of Income tax (Appeal) Bhopal - 3 under which appellant Juri iction lies.

2.

The learned Commissioner of Income tax (Appeal) Raipur - 3 was not justified in dismissing the appeal even though he have no Juri iction to pass

The order continues below.

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