In the course of survey the assessee surrendered stock in trade and credited to P& Loss account . The AO assessed the surrendered amount as income from undisclosed income under section 69 of the Act . CIT(A) affirmed the order of the AO . On appeal the Tribunal held that the amount surrendered qua the investment in the excess stock was liable to be taxed under the head business income and not under the head income from other sources. Relied on Shree Sita Udyog v. DCIT , ITA No. 249 to 259 / RPR/ 2017 dt 22-7 -2022 . ( TS -969 -ITAT -2022 dt 12 -12 -2022 )( AY. 2012 -13 )
Kulkarni & Sahu Buildcon Pvt Ltd v. DCIT (2023) BCAJ – February -P.39 ( Rajkot )( Trib)
S. 143(3): Assessment – Civil construction -Stock in trade – Amount surrendered in the course of survey – Assessable as business income – Addition cannot be made as income from undisclosed income under section 69 of the Act . [ S. 69, 133A ]