Montu Shallu Knitwears v. Dy. CIT [2024] 109 ITR 1 (Chd)(Trib)

S. 69B: Amounts of investments not fully disclosed in books of account – Stock not fully disclosed in books of account- Survey -Surrendered in the course of survey -Business income – Surrendered income could not be brought to tax under deeming provisions – Addition is deleted.[S.115BBE, 133A]

Where AO treated the amount surrendered by the assessee during the course of the survey as excess stock under section 69B, since the income surrendered by the assessee was from business operations and Revenue had not pointed out that excess stock had any nexus with any other receipts other than business being carried on by the assessee, the same could not be brought to tax under deeming provisions of section 69B read with section 11BBE. (AY. 2019-20)