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2023 (11) TMI 1099 - ITAT AMRITSARTreatment to income surrendered during survey on account of excess stock - business income or unexplained stock u/s 69B r.w.s.115BBE - AR argued that during scrutiny assessment proceedings, the AO has accepted the business income declared by the appellant in return of income on account of excess stock during survey proceedings but tax the same u/s 69B - HELD THAT:- Since, the excess stock found during the survey primarily pertains to the business carried out by the assessee, and secondly surrendered as business income during survey as accepted by the AO and hence, the excess stock would only be treated as income under the head business income and not as deemed income. In our view, the ld. CIT(A) was wrong in confirming the action of the AO regarding the applicability of the provisions of section 115BBE in case of the excess stock which was not separate or part of another lot of stock. Accordingly, the value of article/stock of the impugned investment was being fully disclosed in the books of account, being regularized by way of surrender of business income as accepted by the AO, would certainly not fall in the mischief of section 69B. Respectfully following judgment in the case of M/s. D. N. Singh v. CIT, Central [2023 (5) TMI 746 - SUPREME COURT] we hold that in the given facts of the present case, the excess stock would not fall in the mischief of section 69B - Decided in favour of assessee.
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