2022 (6) TMI 1106

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..... is part of business income, it is judicially settled that only profit element in such excess stock should be brought to tax. Keeping in to consideration the gross profit rate and net profit rate disclosed by the assessee in the audited financial statements and also the submissions of assessee that the assessee is ready to offer 12% profit on the excess stock, we with a view to end of dispute su .....

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..... ATION OF EXCESS STOCK DISCREPANCY IS UNJUST AND INCORRECT SINCE THE SAID EXCESS STOCK SHOULD HAVE BEEN TREATED AS A BUSINESS INCOME OF APPELLANT AND G.P RATE SHOULD HAVE BEEN APPLIED. 2 FOR THAT SINCE THE SAID EXCESS STOCK IS PART AND PARCEL OF WHOLE STOCK AND SINCE TEB SAID STOCK IS SEPARATELY IDENTYFIABLE, THEREFORE A.O SHOULD HAVE APPLIED THE G.P RATE ON SAID STOCK. 3 FOR THAT APPEL .....

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..... documents and other transactions connected to said survey proceeding. After considering the submissions of the assessee and examining the books of account addition under various heads were made at Rs, 1,34,84,653/- and income assessed at Rs.1,74,98,783/-. 4. Aggrieved, the assessee preferred an appeal before the ld. CIT(A), but partly succeeded. So far as the addition pertained to undisclosed .....

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..... that addition at 12% may be sustained on the alleged amount. 7. Per contra, the ld. Departmental Representative submitted that the assessee miserably failed to furnish relevant details during the course of assessment proceedings. The assessee also did not file revised trading account incorporating the excess stock found during the course of survey. Reference was made to the finding of both the .....

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..... audited financial statements and also the submissions of the ld. Counsel for the assessee that the assessee is ready to offer 12% profit on the excess stock, we with a view to end of dispute sustain the addition on account of undisclosed closing stock at Rs.3,51,430/- i.e. 12% of undisclosed stock of Rs.31,78,588/- and partly allowed, the ground nos. 1,2 and 3 raised by the assessee. 9. Ground .....

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