ITAT Deletes Rs. 50 Lakh Stock Addition: AO Failed to Reject Books of Account

Advertisement Tarapada Modern Rice Mills Vs ACIT (ITAT Kolkata) The appeal filed by Tarapada Modern Rice Mills against the confirmation of an addition of Rs.50,03,733/- for the Assessment Year 2015-16 was allowed by the Income Tax Appellate Tribunal (ITAT), Kolkata Bench. The addition originated from a survey under Section 133A, where the Assessing Officer (AO) found a discrepancy in the stock of paddy, rice, and bran. The firm’s contention was that the excess stock should be treated as business income, and thus only the Gross Profit (GP) rate should be applied, particularly since the...