Sitaram Gupta Vs. ACIT

Parties Involved

Facts Summary

The assessee, a cloth dealer running a proprietorship firm, filed a return of income declaring a total income of Rs.2,98,040/- for the assessment year 2018-19. A survey was conducted on 01.11.2017, during which stock worth Rs.27,01,745/- was found. The assessee claimed that Rs.7,04,867/- belonged to his firm and the remaining Rs.19,96,878/- belonged to his son's firm. The Assessing Officer treated the entire stock as unaccounted income. The Commissioner of Income Tax (Appeals) upheld the Assessing Officer's order. The assessee appealed against this order, arguing that the stock was substantiated by financial statements and that he had suspended business activities due to age and illness.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer on account of unexplained stock found during survey is justified.
• 2. Whether the addition made by the Assessing Officer on account of unaccounted business income is justified.

Judgment Outcome

Decided in favour of Assessee.

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