Opinion Of Eminent Legal Luminaries On Controversial Issues

Unexplained investments -Excess stock found – Whether taxable

QUERY: Whether Assessing Officer is justified in treating excess stock found as undisclosed investment under section 69 of the Act?
ANSWER: Yes, as per the Bombay High Court in Ramanlal Kacharulal Tejmal [146 ITR 368] excess stock found represents investment of the assessee in property and therefore same can be assessed under section 69 of the Act.
Similar view has been taken by the Gujarat High Court in Fakir Mohmed Haji Hasan v. CIT [246 ITR 290] and Punjab & Haryana High Court in B. T. Steel Ltd. v. CIT [328 ITR 471].
EXPERT:
SECTION(S):
GENRE:
CATCH WORDS:

Leave a Reply

Your email address will not be published.

*

Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org