2023 (8) TMI 1643

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....he same identical facts, we proceed to hear these three appeals together and to pass a consolidated order for the sake of convenience. 3. First, we shall take up appeal in ITA No. 79/PUN/2023 for A.Y. 2019-20. 4. The assessee raised sole ground of appeal challenging the action of CIT(A) in confirming the order of AO in treating the amount of Rs.37,00,000/- as unexplained investment u/s. 69B of the Act, consequently, charging the same under the provisions of section 115BBE of the Act. 5. Brief facts of the case are that the assessee is an individual engaged in the business of comprising sale of readymade garments, hosiery items, shirting and suiting items, etc. The assessee conducts its business under the name and style as "M/s. Gundale ....

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....y business engaged in clothing and vehemently argued the deeming provisions u/s. 69B of the Act is not applicable to the facts on hand as excess stock was offered and credited to the profit and loss account. The ld. DR, Shri Ajay Kumar Kesari relied on the order of CIT(A). 7. Heard both the parties and perused the material available on record. There is no dispute regarding offering of additional income on account of excess stock for an amount of Rs.37,00,000/- during the course of survey. We note that as rightly pointed by the ld. AR which is not disputed by the ld. DR crediting the said additional income to profit and loss account and by including in the computation of income in the total income of the assessee which clearly demonstrate t....

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....the case of Govind Godomal Lulla (supra) held undisclosed investment in the case of excess stock found during carrying on business and the same is generated out of business income, no provisions of section 69B of the Act would attract. Further, the Jodhpur Benches of the Tribunal in the case of Shri Lovish Singhal (supra) held the excess stock/cash found during the course of survey is taxable under the business and no provision u/s. 115BBE of the Act is attracted. In the present case as discussed above without any dispute the assessee offered additional income under excess stock during the course of survey and same was entered in the books of account as on the last day of financial year ending on 31-03-2019 and offered the said amounts to t....