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].

Posted in Income-tax

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