TMI Blog2023 (11) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BE. 3. In appeal, the ld. CIT(A) has restricted the addition made on account of excess stock found during the course of survey of at Rs.18,85,319/- as against Rs. 40 lacs, surrendered by the assessee. However, ld. CIT(A) has taxed the addition confirmed u/s 69B r.w.s. 115BBE. 4. The ld. counsel for the appellant assessee argued that the excess stock found during the survey was nothing but income earned out of business carried by the assessee which was not declared in the books of account. Since, there was an excess of stock found during the survey pertaining to the business carried out by the assessee, and thus, the excess stock being surrendered would only be treated as income under the head business income and not as deemed income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chief of section 69B of the Act. The question also arises whether the excess stock found during the search which is not separate from the entire lot of stock of the assessee can be treated as other valuable articles though certainly not in the nature of bullion and jewellery. This question has been considered by the Hon'ble Supreme Court in the latest judgment in case of M/s. D.N. Singh vs. CIT, Central, Patna and Another 150 taxmann.com 301 (SC). 5. The AR also rely on the Hon'ble ITAT Indore Bench in the case of M/s. Supremo India Pvt. Ltd. v. ACIT, Central -3, Indore in ITA No. 29/Ind/2023 dated 07.06.2023 [2023] (7) TMI 733- ITAT Indore where it was held as under: Whether the excess stock found during the search which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contra, the ld. DR relied on the impugned order. However, he failed to controvert the contention raised by the appellant. 7. Heard the rival contention, perused the material on record, the impugned order and case laws cited before us. Admittedly, the CIT appeal has restricted the addition made on account of excess stock found during survey of at Rs.18,85,319/- as against Rs. 40 lacs, surrendered by the assessee but taxed u/s 69B r.w.s. 115BBE of the Act. The ld. counsel contended that the excess stock found during the survey was business income out of business carried out by the assessee but not declared in the books of account. Since, the excess stock found during the survey primarily pertains to the business carried out by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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