SANJAY MALVIYA,BETUL vs. DCIT/ACIT 1(1) , BHOPAL

ITA 1087/IND/2025Status: DisposedITAT Indore30 June 202614 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the AO erred in invoking Section 115BBE without properly considering the assessee's reply and the nature of the surrendered income as business income. The addition of excess stock was sustained, but at the normal rate of tax.

What were the facts?

During a survey, the assessee surrendered undisclosed income of Rs. 31,02,499/- due to excess stock. Initially, the Assessing Officer (AO) accepted the returned income, but later rectified the order under Section 154 to tax the surrendered amount under Section 69A read with Section 115BBE at a special rate.

What were the issues?

Whether the rectification order invoking Section 115BBE was valid, and whether the surrendered income from excess stock should be taxed at special rates or normal rates.

Which sections of the Income-tax Act were involved?

Section 154,Section 69A,Section 115BBE,Section 143(3),Section 253,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: DR.ARJUN LAL SAINI & SHRI PARESH M. JOSHI

Hearing: 12.06.2026Pronounced: 30.06.2026

Per Paresh M. Joshi, JM:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order

bearing Number:-CIT(A)-3,Bhopal/NFAC/2017-18/10205947

dated 16.10.2025 passed by the Ld. CIT(A) u/s 250 of the Act which is hereinafter referred as the “Impugned order”.

SANJAY MALVIYA ITA No. 1087/Ind/2025 AY-2018-19 The Relevant Assessment Year is 2018-19 and the corresponding Previous Period is from 01/04/2017 to 31/03/2018. 2. FACTUAL MATRIX

2.

1) That as and by way of an Assessment Order made u/s 143(3) read with section 144B of

The order continues below.

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