Excess Stock is Business Income & Not taxable under section 115BBE

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 pe...