Excess stock found during survey is business income, not unexplained U/S 115BBE

Kolhapur Timber And Furniture Mart Vs ACIT (ITAT Pune) Income Tax Appellate Tribunal (ITAT) Pune bench has allowed an appeal filed by Kolhapur Timber And Furniture Mart, a partnership firm, against the order of the Commissioner of Income Tax (Appeals)-11, Pune. The tribunal ruled that excess stock amounting to Rs. 50,05,145/-, detected during a survey operation and subsequently offered to tax by the assessee, should be assessed as business income under normal provisions of the Income Tax Act, 1961. This decision overturns the lower authorities’ action of taxing the amount as “incom...