https://www.taxtmi.com/caselaws?id=775224 ITAT Chennai dismissed the revenue's appeal regarding excess stock found during survey at assessee's jewelry business premises. The tribunal upheld CIT(A)'s decision to tax excess stock as business income rather than under section 69B, noting AO failed to establish income from sources other than jewelry business. Regarding stock computation, ITAT found AO and CIT(A) incorrectly rejected assessee's claim about old gold purchases recorded in separate register without cogent reasons. The tribunal accepted assessee's explanation that 7,806.05 grams from separate ledger should be added to book stock, reducing actual excess from 19,196.265 grams to 11,390.212 grams, supported by GST returns filed for February-March 2018. For valuation, while assessee initially declared rate of Rs. 2,296 per gram and AO/CIT(A) adopted Rs. 2,800 per gram, ITAT adopted Rs. 2,409 per gram as agreed by assessee during proceedings to end litigation. The addition was restricted to excess stock of 11,390.212 grams valued at Rs. 2,409 per gram. en-us Fri, 18 Jul 2025 00:00:00 +0530 Tue, 22 Jul 2025 08:25:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775224 ITAT Chennai dismissed the revenue's appeal regarding excess stock found during survey at assessee's jewelry business premises. The tribunal upheld CIT(A)'s decision to tax excess stock as business income rather than under section 69B, noting AO failed to establish income from sources other than jewelry business. Regarding stock computation, ITAT found AO and CIT(A) incorrectly rejected assessee's claim about old gold purchases recorded in separate register without cogent reasons. The tribunal accepted assessee's explanation that 7,806.05 grams from separate ledger should be added to book stock, reducing actual excess from 19,196.265 grams to 11,390.212 grams, supported by GST returns filed for February-March 2018. For valuation, while assessee initially declared rate of Rs. 2,296 per gram and AO/CIT(A) adopted Rs. 2,800 per gram, ITAT adopted Rs. 2,409 per gram as agreed by assessee during proceedings to end litigation. The addition was restricted to excess stock of 11,390.212 grams valued at Rs. 2,409 per gram. Case-Laws Income Tax Fri, 18 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775224