TaxTMI 
TaxTMI 
Excess stock found at the time of survey u/s 133A will be bussiness income or deemed income under section 69. Will the normal rate of tax will be applicable or tax prescribed u/s 115BBE wii be applicable
Gopal Harlalka
Deemed income u/s 69 read with section 115BBE
28 Nov 2019 
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Deemed income for unexplained stock may attract special unexplained-income tax instead of normal business tax.
Whether excess stock discovered during a survey is characterised as business income or as deemed income under the unexplained-assets provisions, and whether ordinary income tax rates or the special unexplained-income tax regime applies, depends on factual attribution of the surplus to business profits versus unexplained receipts and the consequent tax-rate consequences. (AI Summary)
Whether excess stock discovered during a survey is characterised as business income or as deemed income under the unexplained-assets provisions, and whether ordinary income tax rates or the special unexplained-income tax regime applies, depends on factual attribution of the surplus to business profits versus unexplained receipts and the consequent tax-rate consequences. (AI Summary)