PINK CITY JEWEL HOUSE PRIVATE LIMITED ,JAIPUR vs. PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), JAIPUR

ITA 598/JPR/2024Status: DisposedITAT Jaipur26 December 2024AY 2018-201977 pages
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What did the Tribunal hold?

The Tribunal held that excess stock found during survey should be treated as business income, not unexplained investment under Section 69, and thus Section 115BBE is not applicable. The PCIT's order to treat it as unexplained investment was set aside.

What were the facts?

The assessee company declared income from manufacturing and export of jewelry. The PCIT initiated proceedings under Section 263, holding the assessment order erroneous and prejudicial to revenue. Key issues involved disallowance of ESI/PF, treating excess stock as unexplained investment, and disallowance of interest and Section 10AA deduction.

What were the issues?

Whether excess stock detected during survey should be treated as unexplained investment under Section 69 or as business income, and consequently, whether Section 115BBE is applicable.

Which sections of the Income-tax Act were involved?

Section 263,Section 144,Section 10AA,Section 69,Section 115BBE,Section 68

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM

For Respondent: Adv. Sh. Arvind Kumar, CIT-DR
Hearing: 11/12/2024Pronounced: 26/12/2024

PER: RATHOD KAMLESH JAYANTBHAI, AM This appeal filed by assessee has arisen out of the order of the Principal Commissioner of Income Tax (Central), Jaipur dated 30/03/2024 [here in after Id. PCIT ] for assessment year 2018-19 which in turn arose from the order dated 12.04.2021 passed under section 144of the Income Tax Act, [ for short Act ] by DCIT, Central Circle-1, Jaipur [ for short A

The order continues below.

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