Excess stock found during survey is undeclared business income and not unexplained investment: ITAT Chandigarh

A P Knit Fab Vs DCIT (ITAT Chandigarh) ITAT Chandigarh held that excess stock found during the course of survey cannot be brought to tax under the deeming provisions of section 69B of the Income Tax Act as the same is undeclared business income and not unexplained investment. Facts- The assessee was engaged in the business of manufacturing and selling of Knitted Cloths, hosiery garments and dyed yarn under the name and style of M/s A.P. Knit Fab, Ludhiana. A survey action under Section 133A was carried out at the business premises of the assessee. AO observed that during the course of survey, ...