Excess Stock Assessable as Business Income: Section 69B & 115BBE Not Applicable

Revathi Modern Rice Mill Vs ACIT (ITAT Chennai) In the case of Revathi Modern Rice Mill vs. ACIT (ITAT Chennai), the key issue revolved around the tax treatment of excess stock discovered during a survey. The controversy centered on whether the excess stock should be classified as unexplained investment under Section 69B of the Income Tax Act, which would attract a higher rate of tax under Section 115BBE, or as business income. The Income Tax Appellate Tribunal (ITAT) Chennai ruled in favor of Revathi Modern Rice Mill, setting a significant precedent for similar cases. This article delves into...