BAJARGAN TRADERS,JAIPUR vs. ACIT, ALWAR

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ITA 137/JPR/2017Status: DisposedITAT Jaipur17 March 2017AY 2013-1413 pages
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What did the Tribunal hold?

The Tribunal held that the excess stock should be treated as business income, not income from other sources, as offered by the assessee. Regarding the interest expense, the Tribunal found that the commercial expediency for the advance was established and no nexus was shown between borrowed funds and the advance.

What were the facts?

During a survey, the assessee surrendered Rs. 70,04,814/- for excess stock of rice. The assessee debited this amount to purchases and credited it to income, while the AO treated it as income from other sources. The assessee also claimed disallowance of interest expenses on an advance given to Smt. Rita Gupta.

What were the issues?

Whether excess stock found during survey should be taxed as business income or income from other sources, and whether interest expenses on an advance given for commercial expediency can be disallowed.

Which sections of the Income-tax Act were involved?

Section 133A

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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ ITA No. 137/JP/17

For Appellant: Shri P.C. Parwal (C. A) jktLo dh vksj ls@
Hearing: 14.03.2017

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

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vihykFkhZ@The Appellant- M/s Bajargan Traders, Alwar 2. izR;FkhZ@ The Respondent- The ACIT, Circle-2, Alwar vk;dj vk;qDr@ CIT Alwar 3. vk;dj vk;qDr¼vihy½@The CIT(A) Alwar 4. 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZ QkbZy@ Guard File (ITA No. 137/JP/2017)

vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत.

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