Madan Gangadhar Bidarkar vs. ACIT, Central Circle-1, Aurangabad

Parties Involved

Facts Summary

The appellant, Madan Gangadhar Bidarkar, is an individual and proprietor of M/s. Jailaxmi Electricals, engaged in the business of Electrical items on Retail and Wholesale basis. The Return of Income for the A.Y.2018-19 was filed by the appellant on 16.10.2018 disclosing total income of Rs.83,74,490/-. A survey action was carried out in the business premises of the appellant on 04.10.2017 during which books of accounts and other documents were impounded. The case was selected for Scrutiny under the Manual Selection guidelines. Statutory notices were issued to the appellant on 21.09.2019. The Assessing Officer noticed that out of total declaration an amount of Rs.42,65,315/- was declared on account of excess stock. The appellant was called upon to explain as to why the excess stock found unrecorded in the books of account should not be treated as deemed income u/s.69B of the Act and accordingly taxed u/s.115BBE of the Act. The appellant tendered his explanation but was not convinced. The Assessing Officer passed an order invoking the provisions of section 68B to tax the excess stock amount of Rs.42,65,315/-. The appellant filed an appeal before the CIT(A) who gave part relief on the additions made by the Assessing Officer. The appellant is in appeal contesting the addition made on account of excess stock found during the survey action u/s.69B r.w.s.115BBE of the Act.…

Legal Issues

• 1. The applicability of provisions of section 115BBE of the Act in respect of income declared during the course of survey proceedings and offered to tax in the return of income.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• DCIT, Central Circle-1, Aurangabad. Vs. Shri Satya Saibaba Construction

  Pune bench

• ITO, Ward-3(1), Gaya vs. Shri Gauri Textile Industries, Gaya

  Patna Bench, Patna benchAY 2017-18Dismissed

• Sudhir Gajanan Patil vs. Assessment Unit, Income Tax Department

  Panaji bench

• Chetan Nandlal Sangani vs. Deputy Commissioner of Income Tax

  Rajkot bench

• Sandee Impex vs. Asstt CIT

  Delhi Bench benchAY 2015-16Allowed

• Raj Filling Station vs. DCIT/ACIT

  Delhi bench