https://www.taxtmi.com/caselaws?id=447629 ITAT Chennai held that excess stock found during survey operations cannot be treated as unexplained investment under section 69B due to discrepancies in physical verification and inadequate valuation methodology by Revenue. The tribunal noted that textile and handloom stock estimation within one day was impractical and Revenue failed to demonstrate proper quality-based valuation. Consequently, excess stock should be assessed as business income rather than unexplained investment subject to special tax rate under section 115BBE. Additionally, the tribunal reduced expenditure disallowance from 30% to 20%, acknowledging that some indirect expenses are inevitable in business operations despite absence of detailed evidence. en-us Fri, 29 Dec 2023 00:00:00 +0530 Mon, 01 Jan 2024 07:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447629 ITAT Chennai held that excess stock found during survey operations cannot be treated as unexplained investment under section 69B due to discrepancies in physical verification and inadequate valuation methodology by Revenue. The tribunal noted that textile and handloom stock estimation within one day was impractical and Revenue failed to demonstrate proper quality-based valuation. Consequently, excess stock should be assessed as business income rather than unexplained investment subject to special tax rate under section 115BBE. Additionally, the tribunal reduced expenditure disallowance from 30% to 20%, acknowledging that some indirect expenses are inevitable in business operations despite absence of detailed evidence. Case-Laws Income Tax Fri, 29 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447629