Suresh Aluminium Vs ACIT (ITAT Indore)
Income Tax Appellate Tribunal (ITAT) Indore bench has allowed an appeal filed by Suresh Aluminium, a partnership firm, against the order of the Commissioner of Income Tax (Appeals)-3, Bhopal. The tribunal ruled that excess stock amounting to Rs. 52,25,297/-, surrendered by the assessee during a survey operation, should be taxed as business income under normal provisions of the Income Tax Act, 1961, and not at the higher rates prescribed under Section 115BBE. This decision reverses the findings of both the Assessing Officer (AO) and the CIT(A).
The case pertains to the assessment year 2019-20. Suresh Aluminium, engaged in the business of trading in aluminium items, was subjected to a survey operation under Section 133A of the Act on February 27, 2019, at its business premises. During this operation, a physical stock count was conducted by the survey team, which led to the assessee surrendering an amount of Rs. 52,25,297/- as excess stock.
Following the survey, the assessee filed its return of income on September 11, 2019, declaring a total income of Rs. 33,90,310/-. This declared income included the surrendered excess stock, and the assessee paid taxes on it as per the normal provisions of the Income Tax Act.
