https://www.taxtmi.com/caselaws?id=752644 The ITAT Chennai held that stock differences identified during a survey u/s 133A should be assessed as business income rather than unexplained investment u/s 69B. The AO had computed differential stock using a mathematical formula based on 7% GP rate without noting physical stock discrepancies. Since the assessee's sole income source was business, operated through bank transfers, and no physical quantity discrepancies were found, the excess stock arose from normal business operations. The tribunal ruled that undisclosed business income was ploughed back into stock acquisition, making it assessable as business income only, not subject to higher tax rates u/s 115BBE. en-us Mon, 13 May 2024 00:00:00 +0530 Tue, 14 May 2024 17:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752644 The ITAT Chennai held that stock differences identified during a survey u/s 133A should be assessed as business income rather than unexplained investment u/s 69B. The AO had computed differential stock using a mathematical formula based on 7% GP rate without noting physical stock discrepancies. Since the assessee's sole income source was business, operated through bank transfers, and no physical quantity discrepancies were found, the excess stock arose from normal business operations. The tribunal ruled that undisclosed business income was ploughed back into stock acquisition, making it assessable as business income only, not subject to higher tax rates u/s 115BBE. Case-Laws Income Tax Mon, 13 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752644