Excess stock found during survey in assessee's business premises ...

Excess stock found during survey at business premises, led to surrendered income. Court rules it should be taxed as business income at normal rates, not u/s 115BBE deeming provisions.

Case Laws     Income Tax

September 17, 2024

Excess stock found during survey in assessee's business premises led to surrendered income. Assessing Officer accepted return figures but applied higher tax rate u/s 115BBE, citing lack of stock register maintenance. Following precedents, it was held that surrendered income from excess stock during survey cannot be taxed u/s 69 deeming provisions. It should be assessed as business income at normal rates. Section 115BBE is inapplicable. Assessee's appeal allowed, and income to be charged at regular tax rates.

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