DCIT Vs Vaishali Agro Soya Products (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune bench has dismissed an appeal filed by the Deputy Commissioner of Income Tax (DCIT) against Vaishali Agro Soya Products. The tribunal upheld the Commissioner of Income Tax (Appeals)’s decision, ruling that the amount declared by the assessee on account of excess stock found during a survey operation should be taxed as business income at normal rates, rather than at the higher rates prescribed under Section 115BBE of the Income Tax Act, 1961.
The case pertains to the assessment year 2019-20. Vaishali Agro Soya Products, the assessee, had undergone a survey action under Section 133A of the Act on March 26, 2019. During the survey, an unaccounted excess stock valued at Rs. 7,00,00,100/- was reportedly found. The assessee subsequently declared this amount as deemed income. Following the survey, the assessee filed its return of income on September 25, 2019, declaring a total income of Rs. 9,49,31,020/-, which included the declared amount of Rs. 7,00,00,100/-.
The case was selected for scrutiny. During the assessment proceedings, the Assessing Officer (AO) subjected the declared income from excess stock to the special tax rates under Section 69B read with Section 115BBE of the Act. Section 69B deals with unexplained money, bullion, jewellery, etc., where the assessee is found to be the owner, and Section 115BBE prescribes a higher tax rate on such deemed income.
