Excess Stock found during Survey is Business Income, Not Other Income: Pune ITAT

Late Harilal Mavjibhai Patel Vs ACIT (ITAT Pune)

Income Tax Appellate Tribunal (ITAT), Pune Bench, has delivered a verdict in favor of Late Harilal Mavjibhai Patel (represented by M/s. Kaneeta Enterprises), affirming that excess stock found during a survey operation should be treated as business income rather than unexplained income subject to higher taxation rates. The ruling, issued on April 25, 2025, for the assessment year 2019-20, reverses the orders of the Assessing Officer (AO) and the Commissioner of Income-tax (Appeals) [CIT(A)].

The case originated

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