Case Law Details
Mookambika Impex Vs DCIT (ITAT Chennai)
Introduction: In a landmark ruling, the ITAT Chennai deliberated upon the matter of Mookambika Impex Vs DCIT. The central issue revolved around the classification and assessment of excess stock discovered during a survey.
The Crux of the Matter: Mookambika Impex was challenged by the Department on the grounds of undisclosed business income which was allegedly used to acquire further stock. The ITAT’s decision hinged on whether this excess stock arose from normal business operations or should be deemed as an unexplained investment.
Detailed Analysis:
1. Grounds for Appeal: Mookambika Impex appealed against the order of the Commissioner of Income Tax (Appeals)-18, alleging various procedural and interpretative discrepancies. The main contention was the misclassification of the surplus stock, found during a survey, as unexplained investment.
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