ONE OF THE JEWELER SHOP HAS NOT DISCLOSED GOLD STOCK IN HIS BOOKS OF ACCOUNT. DURING SEARCH / SURVEY WHAT IS THE TAX TREATMENT FOR THE SAME UNDER THE PROVISIONS OF INCOME TAX ACT?
Menu
Undisclosed gold stock in the books of jeweler shop
Replies (2)
I think Undisclosed gold stock will be treated as income from undisclosed sources / unexplained income in the form of gold and tax interest penalty under 271(1)(c) will be levied. Also a provision for prosecution.
1. If the Jewellery shop had not disclosed the stock in its books of accounts it becomes an unaccounted income and subsequently, it is dealt as per sec 69B.
2. Since you have mentioned that it is a stock, thus it becomes a part of business income which had escaped income tax.
3. An application cannot be moved u/s 132B(4) even if the nature and source of such income were explained to the satisfaction of the A.O.
4. The value of the above stock will be taxed as per sec 115BBE at a maximum marginal rate. Followed by penalty and prosecution.
Please correct me if the above solution has an alternative view.
Recent Threads
- ITR updated return
- Company change Status from CIRP into Active
- Can a LLP Park money in MFs and do F&O
- ACCOUNTING TREATMENT FOR FIXED ASSETS STANDING AT
- GST Rule 14A and Form GST REG-32: Simplified Regis
- Filed Hotel commission from International Company
- Reinsurance brokerage section?
- Gst me Registration Zaruri Hain Kya?
- Discuss and Download CA Inter Question Paper Janua
- Discuss and Download CA Final Question Paper Janua
Related Threads
CAclubindia
