TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Excess stock income shown in trading account not treated as unexplained cash credit under Section 68; Section 115BBE inapplicable</h1> <h3>Abhijit Vivek Swami Versus ACIT, Central Circle, Kolhapur</h3> ITAT held that excess stock income voluntarily offered and recorded by the assessee in the trading account could not be treated as unexplained cash ... Rate at which income offered by the assessee ought to have been charged - assessee agreed for the addition towards such excess stock as found during course of survey - AO treated such amount as falling under the head ‘Income from other sources’ and hence taxed the same as income u/s. 68 at a higher rate u/s. 115BBE - HELD THAT:- The assessee passed relevant entry into books of account showing this amount as additional income and specifically portrayed it as income in the ‘Trading account’. Once a particular amount has been shown as income by the assessee in its books of account, fail to appreciate as to how section 68 can be attracted qua such income. As satisfied that though the assessee offered income during the course of survey and included it in his return of income, the same does not fall for consideration u/s. 68 so as to attract the rigour of section 115BBE - income was not properly taxed at the increased rate u/s. 115BBE and was correctly offered by the assessee at the regular rate. Assessee appeal is allowed. Assessee surrendered Rs. 13,83,663 during a survey u/s. 133 on 06-02-2019 as excess closing stock for FY relevant to AY 2019-20 (financial year still in progress). The amount was declared in the return as regular business income in the 'Trading account.' AO treated it as income u/s. 68 and taxed it under s. 115BBE, contending it was a cash credit attracting higher rate. Tribunal noted there was no cash credit and that the assessee had recorded the entry in books as business income. 'I fail to appreciate as to how section 68 can be attracted qua such income.' Consequently, the Tribunal held that the amount did not fall under s. 68 and therefore should not be taxed u/s. 115BBE, concluding that 'the income of Rs. 13,83,663/- was not properly taxed at the increased rate u/s. 115BBE and was correctly offered by the assessee at the regular rate.'
TaxTMI 
TaxTMI 
