The ITAT Delhi held that the additional income surrendered due ...

ITAT Delhi ruled on additional income from excess stock not included in trading account. Gross profit estimation upheld.

May 25, 2024

Case Laws Income Tax AT

The ITAT Delhi held that the additional income surrendered due to excess stock should be treated as unexplained investment taxable u/s 69 of the Act, not as business income. The assessee's explanation of reduced gross profit due to heavy competition lacked supporting evidence. The surrendered income was not included in the trading account but offered as other income. The AO rightly rejected the books u/s 145(3) and calculated differential gross profit based on the previous year's margin. The varying profit margins and behavior of the assessee justified the addition of Rs. 1,08,51,505. The CIT(A) confirmed this decision, dismissing the assessee's grounds.

View Source

← Previous Next →

The ITAT Delhi held that the additional income surrendered due ...

ITAT Delhi ruled on additional income from excess stock not included in trading account. Gross profit estimation upheld.

May 25, 2024

Case Laws Income Tax AT

You may also like:

Additional income offered on account of excess stock during the course of survey - business income of the assessee OR income from other sources liable to be taxed at a...

The High Court dismissed the appeal filed u/s 260A, holding that no substantial question of law arises. The Assessing Officer had rejected the assessee's books of...

Long Term Capital Gains - claim of conversion of agriculture land into stock-in-trade - The assessee was required to disclose such lands as stock in trade in books of...

Provision of section 145(3) invoked without satisfying conditions - books of accounts rejected without following proper procedure u/s 144. Gross profit addition made...

The Income Tax Act did not intend to tax deemed rental income from properties held as stock-in-trade prior to the assessment year 2018-19. Section 23(5), introduced from...

Unexplained deposits in bank account - Amount deposited in the bank account was out of sale of various items as held by the assessee as stock in trade and since the...

CIT(A) determined excess stock and short stock during survey. ITAT partly allowed assessee's appeal. For excess stock, benefit of doubt given to assessee for 50% of...

Income from house property - Determining the ALV of flats disclosed in the stock in trade as per the Accounting standards and policies being fallowed consistently by the...

Excess stock found during survey triggered initiation of proceedings against petitioner. Court held if excess stock found, proceedings u/ss 73/74 of GST Act should be...

Revision u/s 263 - Additions u/s 69 r.w.s. 115BBE - excess stock found during the course of survey as admitted to be the undisclosed business income of the assessee, by...

Computation of capital gain - conversion of Gold in stock in trade and income from other sources - assessee converted the gold into stock in trade on various dates and...

The assessee was found with excess stock of jewellery during a search operation. The Assessing Officer (AO) invoked provisions of Sections 69A and 69B, treating the...

Shares converted into stock-in-trade - Valuation adopted for conversion of investments to stock-in-trade, opening stock and closing stock - where an assessee converts...

Excess stock found during survey triggers proceedings u/ss 73/74 of the GST Act, not Section 130. The authority noted excess stock by eye estimation without physical...

Excess stock found during survey - search conducted u/s 133A - the excess stock found during search is nothing but business stock carried on by assessee which is not...

Quick Updates: