Sales against Opening stock accepted by department cannot be treated as unexplained income

PCIT Vs Akshit Kumar (Delhi High Court)

ITAT observed that in the impugned AY 2014-15, the audited balance-sheet reflected an opening stock of Rs. 19,53,29,660/- which stood accepted by the Department either under the scrutiny proceedings or by not selecting the return for scrutiny or by not taking any action to disturb such returned income. In these circumstances, it was held that the quantum figure and the opening stock which stood accepted in the earlier years had to be taken as actual stock available with the Respondent-Assessee. In view of these facts, the sales made by the Respondent-Assessee out of its opening stock were not treated as unexplained income, to be taxed as income from other sources.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

C.M.No.15854/2019 (Exemption)

1. Allowed, subject to all just exceptions.

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