Investment in unrecorded stock taxable as ‘Business Income’

ITAT held that amount surrendered by way of investment in the unrecorded stock of rice has to be brought to tax under the head “business income. It Further held that Only real income can be taxed, hypothetical income cannot be taxed nor income can be taxed in vacuum. Investment in unrecorded stock taxable as ‘Business Income’ 1.  During the survey operation, the assessee has surrendered an amount of Rs. 70,04,814/- on account of a major discrepancy in stock of rice which had hitherto not been recorded in books of accounts . Further, the partner of the assessee firm admitted that the inv...