ITAT Indore: Excess Stock is Business Income, Not unexplained investment

ACIT Vs Italian Edibles Pvt. Ltd. (ITAT Indore) Income Tax Appellate Tribunal (ITAT), Indore Bench, has delivered a ruling affirming that additional income declared by an assessee on account of excess stock found during a survey, if linked to the assessee’s regular business activities, should be treated as business income and taxed at normal rates, rather than as undisclosed investment attracting the higher tax rates under Section 115BBE of the Income Tax Act, 1961. The case involved Italian Edibles Pvt. Ltd., a manufacturer of confectionery items. During a survey conducted under Section...