During course of survey on 1 st March , 2013 , the assessee surrendered income on account of excess stock ,however, in return of income, assessee showed lower income on account of excess stock by taking a plea that prevailing price of gold had fallen as on 31-3-2013. AO rejected assessee’s explanation and made addition under S. 69, read with S .115BBE of the Act. CIT (A) deleted the addition . On appeal by revenue dismissing the appeal , the Tribunal held that ,S. 115BBE is applicable with effect from 1-4-2017 and not prior to that. however, in view of fact that question as to whether entire stock which was found excess at time of survey remained as unsold till 31-3-2013 so that assessee could take benefit of reduction in prevailing price of gold against surrendered income on account of unexplained investment in stock, had not been examined by lower authorities, matter was to be remanded back for said limited purpose of verification. Followed ,ACIT v. Sanjay Bairathi Gems Ltd. [2017] 166 ITD 445 (Jaipur) ( Trib.) ( AY.2013-14)
ACIT v. Satish Kumar Agarwal. (2018) 172 ITD 143 (Jaipur) (Trib.)
S.115BBE: Tax on income referred in section 69-Survey -Surrender of excess stock – Prevailing price of gold had fallen as on 31-3-2013- Unexplained investments – Loss is allowed to be set off against income disclosed in the course of survey -Provision is applicable with effect from 1-4-2017 which h is prospective and not prior to that -Remanded for verification whether entire excess stock found in the course of survey remained unsold as on 31-03 -2103 .[ S. 69 , 133A ]