Punihani International vs. DCIT

Parties Involved

Facts Summary

The appeal in ITA No. 1734/Del/2022 for the Assessment Year 2016-17 arises from the order of the Commissioner of Income Tax (Appeals) in Appeal No. 10/10146/2018-19 dated 31.05.2022 against the order of assessment passed under section 143(3) of the Income-tax Act, 1961 dated 14.12.2018 by the Assessing Officer, DCIT, Special-10, Delhi. The assessee, Punihani International, had shown only business income for the Assessment Year 2016-17. A survey under section 133A of the Act was conducted on 17.12.2015, wherein the assessee had declared additional income of Rs 2.50 crores over and above the regular income on account of excess stock found during the survey. The assessee had not offered this excess stock while filing the return of income, leading the Assessing Officer to make an addition of Rs 2,50,00,000/- towards excess stock under section 69B of the Act. The assessee had requested the Assessing Officer to provide the survey report along with the stock statement prepared during the survey, but this request was not fulfilled.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in confirming the addition made by the Assessing Officer in the sum of Rs 2,50,00,000/- u/s 69B of the Act towards unexplained stock in the facts and circumstances of the instant case.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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