M/S A.P. KNIT FAB,LUDHIANA vs. DCIT CC-3, LUDHIANA

ITA 732/CHANDI/2022Status: DisposedITAT Chandigarh15 February 2024AY 2018-19Bench: SHRI. SANJAY GARG (Judicial Member), SHRI. VIKRAM SINGH YADAV (Accountant Member)19 pages
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What did the Tribunal hold?

The Tribunal held that the excess stock represented business income and not unexplained investment. Therefore, Section 69B and Section 115BBE were not applicable, and normal tax rates should apply.

What were the facts?

During a survey, the assessee surrendered Rs. 1,00,24,282/- on account of excess stock found. The Assessing Officer treated this as unexplained investment under Section 69B and taxed it under Section 115BBE. The assessee contended it was business income.

What were the issues?

Whether excess stock found during a survey, surrendered by the assessee, should be taxed as unexplained investment under Section 69B or as business income.

Which sections of the Income-tax Act were involved?

Section 69B,Section 115BBE,Section 133A

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Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"डीगढ़ "यायपीठ “ए” , च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE "ी संजय गग", "याियक सद"य एवं "ी िव"म "सह यादव, लेखा सद"य BEFORE: SHRI. SANJAY GARG, JM & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA NO. 732/Chd/ 2022 िनधा"रण वष" / Assessment Year : 2018-19 M/s A P Knit Fab बनाम The DCIT Bawa Colony, Bahadur Ke Road, Central Circle-3 Ludhiana Ludhiana "थायी लेखा सं./PAN NO: AAUFA3235B अपीलाथ"/Appellant ""यथ"/Respondent िनधा"रती क" ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज"व क" ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR सुनवाई क" तारीख/Date of Hearing : 19/12/2023 उदघोषणा क" तारीख/Date of Pronouncement : 15/02/2024

आदेश/Order PER VIKRAM SINGH YADAV, A.M. :

This is an appeal filed by the Assessee against the order of the Ld. CIT(A)-5, Ludhiana dt. 02/12/2022 pertaining to Assessment Year 2018-19. 2. In the present appeal, the assessee has raised the following grounds:

1.

“That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in taxing the amount of Rs. 1,00,24,282/- u/s 69 read with section 115BBE of the Income Tax Act, 1961. 2. That the Ld. CIT (A) has fa

The order continues below.

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