NAKHRALI,BHOPAL vs. ACIT CENTRAL CIRCLE - 1, BHOPAL, BHOPAL

ITA 763/IND/2025Status: DisposedITAT Indore14 May 2026AY 2019-2030 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the excess stock was a result of suppressed business income over the years and not an unexplained investment. The excess stock was part of the overall business stock and not separately identifiable, thus sections 69/69A/69B were not applicable.

What were the facts?

During a survey, the assessee firm surrendered excess stock of Rs. 1,50,00,000/-. The assessee offered this as business income and paid tax at the normal rate. However, the AO treated it as unexplained investment under sections 69/69A/69B and taxed it at a higher rate under section 115BBE.

What were the issues?

Whether excess stock found during a survey, surrendered by the assessee and offered as business income, can be treated as unexplained investment under sections 69/69A/69B and taxed at a higher rate under section 115BBE.

Which sections of the Income-tax Act were involved?

Section 69,Section 69A,Section 69B,Section 115BBE,Section 28

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANISHRI PARESH M.JOSHIAND

For Appellant: Shri S.S. Deshpande & Shri Atindra Kulkarni, ARs
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 07.04.2026Pronounced: 14.05.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 10.07.2025 passed by learned Commissioner of Income-Tax (Appeals)-3, Bhopal [“CIT(A)”], which in turn arises out of assessment-order dated 24.09.2021 passed by learned ACIT, Central Circle-1, Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2019-20, the assessee has filed this appeal on following grounds:

“1. The CIT(A) has erred in maintaining the taxing of income declared as undisclosed investment and making the addition u/s 69A/69B r.w.s 115BBE and taxing the income at a higher rate.

Nakhrali Assessment year 2019-20

2.

It was prov

The order continues below.

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