Appeals allowed for dealer contesting tax addition on undisclosed stock value.

The appeals were filed against the order of the CIT(A) regarding the addition made under section 69B of the Income Tax Act for the assessment year 2018-19. The assessee, a dealer of gold and silver articles, declared a difference in stock value during a survey. The assessing officer confirmed the addition under section 69B and levied tax under section 115BBE. The tribunal held that the undisclosed stock was part of the business income, rejecting the tax under section 115BBE. Consequently, both appeals were allowed in favor of the assessee, setting aside the tax assessment under section 115BBE.

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Issues Involved:
Appeals against order of CIT(A) - Addition made u/s 69B of the Income Tax Act - Taxability of undisclosed stock - Application of section 115BBE - Assessment of tax rate - Charging of interest under Section 234A and 234B - Nature of investment in stock - Business income or other sources.

Analysis:
1. The appeals were filed against the order of the CIT(A) concerning the addition made under section 69B of the Income Tax Act for the assessment year 2018-19. The appeals were heard together as the issues were identical for both assessees.
2. The assessee, a dealer of gold and silver articles, declared a difference in stock value amounting to Rs.50,39,395 during a survey conducted by the revenue department. The tax was paid on this difference under the normal rate.
3. The assessing officer confirmed the addition under section 69B and levied tax under section 115BBE. The assessee contended that the tax charged under section 115BBE was unwarranted as the undisclosed stock was part of the business income.
4. The counsel for the assessee argued that the undisclosed stock was generated from business income and should not be taxed under section 115BBE. The counsel relied on relevant case laws to support the argument.
5. The tribunal observed that the revenue authorities failed to prove that the investment in the undisclosed stock was from a source other than business income. The tribunal held that the application of section 69B was not justified, and the tax levied under section 115BBE was rejected.
6. Consequently, both appeals were allowed in favor of the assessee, and the tax assessment under section 115BBE was set aside. The order was pronounced on 24th January 2023.

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