Case Law Details
Smt. Nandini Sharma Vs ACIT/DCIT Central Circle (ITAT Amritsar)
ITAT Amritsar held that provisions of section 115BBE of the Income Tax Act cannot be made applicable where assessee has made a statement that the excess stock was a result of suppression of profit in respect of sales made outside the books of accounts.
Facts- During survey operations, stock of Rs.54,94,959/- was found as against stock of Rs. 48,68,459/- as per Books of Account. Thus, an excess stock of Rs.6,26,500/- was found.
The assessment for the Ay 2019-20 was completed u/s 143(3) by invoking the provisions of section 115BBE on excess stock amounting to Rs. 6,26,500/- as alleged by the department.
The appellant has preferred an appeal before the CIT(Appeals) on the limited issue of whether provisions of section 115BBE can be invoked on the alleged excess stock. The CIT(A) confirmed the action of AO invoking provisions of section 115BBE by observing that once the assessee has voluntarily surrendered the income, and included the same in ITR and paid taxes. This act of the assessee validates the action of department that the assessee was having undisclosed income offered for tax at Rs 6,26,500/-.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
