Excess stock already accounted by Assessee before search cannot be taxed as undisclosed Income

ACIT Vs New Horizons Limited (Kolkata High Court)

It is observed that physical verification of stock was carried out by the assessee-company in the month of January and February, 2015 as a matter of internal control and surplus stock of Rs.4,70,54,450/- found on such physical verification was duly incorporated by the assessee-company in its books of account in the month of March, 2015 itself. A search under section 132 of the Act was conducted in the case of the assessee and the same commenced on 20.03.2015

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