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The Tax PublishersITA No. 138/Viz/2020
2020 TaxPub(DT) 5076 (Visakhapatnam-Trib)INCOME TAX ACT, 1961
Section 263
Excess stock found during search/survey is permitted to be assessed under business income as well as unexplained investment under section 69. In the instant case AO, considered the explanation of assessee and caused necessary enquiries after satisfying himself that income representing excess stock was required to be brought to tax as business income, but not under section 69. Merely because CIT took a different view on the matter, he could not be permitted to make revision under section 263.
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Revision under section 263 - Erroneous and prejudicial order - Excercise of jurisdiction by Pr. CIT on account of difference of opinion -
Pr.CIT held order passed by AO as erroneous and prejudicial to the interest of revenue on the ground of AO having applied Normal tax rates in respect of excess stock found during the course of search, instead of applying section 115BBE. Held: Excess stock found during search/survey is permitted to be assessed under business income as well as unexplained investment under section 69. In the instant case, AO considered the explanation of assessee and caused necessary enquiries after satisfying himself that income representing excess stock was required to be brought to tax as business income, but not under section 69. Merely because CIT took a different view on the matter, he could not be permitted to make revision under section 263.
Followed:Chokshi Hiralal Manganlal v. Dy. CIT (2011) 45 SOT 349 (Ahd-Trib) : 2011 TaxPub(DT) 1410 (Ahd-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2017-18
IN THE ITAT, VISAKHAPATNAM BENCH
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