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2023 (7) TMI 1086 - AT - Income TaxExcess stock found during the survey proceedings as unexplained investment u/s 69 r.w.s.115BBE - applicability of the provision of section 69/69A/69B and consequential higher rate of tax u/s 115BBE in respect of the income surrendered and offered to tax by the assessee on account of excess stock and excess cash found during survey - HELD THAT:- Excess stock - Once the facts emerging from record shows that the excess stock found during survey was a part of entire lot of stock of assessee, part of which is recorded in books of account and part of the same was not found recorded and therefore, treated as excess stock at the time of survey and consequently surrendered by the assessee and also offered to tax in the return of income then the excess stock cannot be treated as deemed income u/s 69 or 69B of the act. Accordingly, this issue is decided in favour of the assessee. Excess-Cash - Neither before lower-authorities nor before us, the assessee has not shown anything to demonstrate that the said reply was not correct. Therefore, there could hardly be any dispute that the excess-cash represented assessee’s income from unexplainable source attracting the provisions of section 69A. AR, in his submission, has referred to a part of the reply and not taken into account this part of assessee’s reply. Being so, we are inclined not to accept Ld. AR’s submission that the excess cash could be treated as business income. We uphold the action of lower-authorities in holding excess cash as deemed income u/s 69A attracting higher rate of tax u/s 115BBE. The assessee fails to this extent. Appeal of assessee is partly allowed.
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