2023 (5) TMI 356

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..... e is in the business of manufacturing of sweets (Mithai) and the stock which was found was the raw material/ ingredients used for preparation of the sweets. In the course of survey, the assessee in his statement on this issue merely stated that he will provide the reconciliation in some time about the discrepancy. Later on assessee offered the difference for taxation as business income, because th .....

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..... nsequently, the provision of section 115BBE is not applicable - Assessee appeal allowed.
SHRI AMIT SHUKLA, JM AND SHRI PRASHANT MAHARISHI, AM Appellant by: Shri Dharan Gandhi Respondent by: Shri Ram K. Kedia, Sr. AR. ORDER Per Amit Shukla, Judicial Member: The aforesaid appeal has been filed by the Assessee against order dated 19.07.2022, passed by Ld.CIT (A) 51, Mumbai, for the quantum of .....

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..... h has resulted into higher rate of tax. 3. The facts in briefs are that, assessee has filed the return of income for A.Y. 2019-20 u/s. 139(1) on 18.10.2019 declaring income of Rs. 8,10,58,630/-. A survey action 133A of the Act was carried out on the business premises of the Assessee, M/s. Jhama Sweets on 15.01.2019. Based on the survey finding, the case was selected for scrutiny under "compulsory .....

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..... rightly tax u/s. 69 and consequently, provision of section 115BBE are applicable. 6. After hearing both the parties, and on perusal of the relevant finding during the impugned order as well as the material placed before us, it is noticed that there was difference of stock in books and the physical stock found during the survey and such difference was worked out at Rs. 22,38,769/-. Assessee is in .....

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..... ent it was found nor has assessee ever stated that there is some undisclosed investment representing in the form of undisclosed assets. It is a case of excess stock found during the carrying of the business and stock is generated out of business income and therefore, the provision of section 69 on the facts of the case has no applicability. 7. Accordingly, Assessee has rightly offered it has busi .....

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