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TMI Blog2022 (5) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... e head income from other sources. In our considered view, the excess stock found during search is nothing but business stock carried on by assessee which is not declared in the books. Since there is a direct nexus with the type of stock found during survey and the business carried on by the assessee, these excess stock in only be treated as chargeable to tax under the head income from business not under the head income from other sources. Accordingly, ground no. 4 raised by assessee is allowed. Excess stock found during survey as part of business stock and accordingly re-computed and claimed the remuneration to partners as per the Section 40(b) - Since, we already adjudicated ground no. 4 in favour of the assessee that the excess stoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT(A) erred on facts and in law in upholding the order of the AO making an addition of Rs.25,95,321/- as unexplained investment under section 69 without appreciating that the appellant had filed all the details in connection thereto with the AO during assessment proceedings, which was not considered by the AO. 4. The Ld. CIT(A) erred on facts and in law in taxing the disclosure of stock out of the books u/s 69 instead of Income from Business. 5. The Ld CIT(A) erred on facts and in law in upholding the remuneration payable to partners as worked out by the AO. 6. The appellant prays your honour that the income returned by the appellant be accepted. (C) General 7. The above grounds of appeal are without pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e excess stock found is nothing but business stock. We noticed that the AO treated the above excess stock as additional income chargeable to tax under the head income from other sources. In our considered view, the excess stock found during search is nothing but business stock carried on by assessee which is not declared in the books. Since there is a direct nexus with the type of stock found during survey and the business carried on by the assessee, these excess stock in only be treated as chargeable to tax under the head income from business not under the head income from other sources. Accordingly, ground no. 4 raised by assessee is allowed. 6. We observed from the record that the assessee has treated the excess stock found during sur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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