Cash & Stock Income Taxable as Business Income, Not u/s 69A: ITAT Bangalore

DCIT Vs Raj Diamonds (ITAT Bangalore) Income Tax Appellate Tribunal (ITAT) Bangalore dismissed the revenue department’s appeal against Raj Diamonds, affirming that additional cash and stock found during a search should be taxed as business income rather than unexplained investment under Section 69A of the Income Tax Act. The case involved a search operation in June 2019, where tax authorities discovered excess cash of ₹34.65 lakh and unrecorded stock worth ₹1.38 crore. The assessee initially admitted to this being unaccounted income but later claimed that the cash was an advance from cus...