MR. RAMANLAL RAGHABHAI PATEL,DAMAN vs. THE ACIT, VAPI CIRCLE, VAPI

ITA 1357/SRT/2025Status: DisposedITAT Surat27 July 2026AY 2017-1814 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had offered the excess stock as business income and paid taxes. The matter was restored to the CIT(A) for fresh adjudication after considering the assessee's detailed submissions and allowing an opportunity to produce necessary documents.

What were the facts?

During a survey, excess stock of Rs. 31,57,211/- was found. The assessee declared this as additional business income and paid taxes. However, the Assessing Officer treated it as unexplained investment under Section 69B, and the CIT(A) upheld this.

What were the issues?

Whether the excess stock found during survey, declared as business income and taxed, can be treated as unexplained investment under Section 69B. Also, the applicability of enhanced tax rates under Section 115BBE on income declared prior to the amendment.

Which sections of the Income-tax Act were involved?

Section 69B,Section 115BBE,Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: Shri T. R. Senthil Kumar & Shri Ratnesh Nandan Sahay

For Appellant: Shri Darshit J Naik, C.A
For Respondent: Ms. Neerja Sharma, Sr. DR
Hearing: 05/05/2026Pronounced: 27/07/2026

PER: RATNESH NANDAN SAHAY, AM:

1.

This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi [In short, ‘the ld. CIT(A)’] dated 01/08/2025 for the assessment year (AY) 2017-18 wherein the assessee has raised following grounds of appeal:

"

1.

The Assessing Officer erred in raising a demand of Rs.19,72,002/- on the Appellant.

2.

The Learned Assessing Officer has erred in Law and on Facts, in taxing the sum of Rs.31,57,211/- as unexplained investment without considering the fact that the said amount of Rs.31,57,211/- was duly recorded in the books and due taxes were also paid before filing the return of inc

The order continues below.

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