ITAT Limits Additions on Excess Stock to 12% Profit Margin After Survey

Satchidananda Agro Tech Pvt. Ltd. Vs ACIT (ITAT Kolkata) The appeal filed by Satchidananda Agro Tech Pvt. Ltd., a private limited company engaged in the paddy mill business, concerned an addition of Rs.31,78,588/- made on account of excess stock found during a survey conducted under Section 133A of the Income-tax Act, 1961, for the Assessment Year 2015-16. The Assessing Officer (AO) had made a total addition of Rs.1,34,84,653/- under various heads, which the Ld. CIT(A) partly reduced. Crucially, the Ld. CIT(A) deleted an addition for undisclosed investment in stock but confirmed the addition f...