TaxTMI 
TaxTMI 
2011 (5) TMI 681
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....e firm who was engaged in the business of importing and trading in chemicals. During the course of the search, some loose papers were found which were impounded. The pages 26 to 28 of the loose papers showed unaccounted cash sales as per details given below : i) Cash sales on 15.5.2004 Rs.9.75 lacs ii) Cash sales on 27.5.2004 Rs.2.10 lacs iii) Cash sales on 18.11.2004 Rs.8.10 lacs TOTAL Rs.19.95 lacs ====== 2.1 Similarly the pages 29 & 30 showed commission income of Rs.26,96,797/- and Rs.40,18,324/- respectively. 2.2 A statement of Shri Surinder Kumar Choudhary, partner was recorded at the time of survey on 18.2.2005 in which he admitted that the commission income and the cash sales were not reflected in the regular books of accounts....
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....d the allegations made. The AO after necessary examination made addition of Rs.9.75 lacs on account of unaccounted sales, Rs.24,539/- on account of gross profit in relation to cash sales and additions of Rs.8,62,245/- and Rs.11,23,980/- as unaccounted commission income. In appeal CIT(A) confirmed the additions made aggrieved by which the assessee is in appeal before the tribunal. 2.3 In the ground Nos.1 & 2, the assessee has raised the issue of forcible extraction of the statement by the survey party at the time of survey. It has been submitted that at the time of survey, no incriminating documents were found and the survey team had forced one of the partners to declare additional income. The son of the partner as well as an employee were ....
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....s letter no allegation was made. The loose papers found have been duly signed by the partners and these clearly gave the details of unaccounted sales and unaccounted commission. Under these circumstances the affidavits filed retracting the statement and making allegations six months later has to be treated as a self serving statement by the partner and his employees and this has to be rejected as an afterthought. The allegations made in ground Nos.1 and 2 are therefore rejected. 2.5 In ground No.3 & 4 the dispute raised is regarding addition of Rs.9,75,000/- on account of unrecorded investment in relation to the cash sales and addition on account of gross profit. As mentioned earlier the entries made on pages 26, 27 & 28 showed sales of Rs....
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....d forcible extraction of the statement is not supported by any evidence and the affidavits filed have to be rejected as self serving statement. The pages 26, 27, & 28 copies of which have been placed in the paper book clearly show cash sales giving the quantity of sales, rates and sale value. These are not dump documents. These sales are admittedly not accounted in the regular books. Therefore in our view these have been rightly considered as unaccounted sales and additions have been rightly made on account of unexplained investment and gross profit. AO has computed unexplained investment in a fair manner by treating the subsequent two sales as explained from the income received from the first sale. There is nothing produced before us to co....
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....y Amount Date Adani Exports Ltd. 30,000 28.7.2004 Sarvodaya Trading Co. 37,500 5.8.2004 Jupiter Dyechem Ltd. 27,600 2.8.2004 Adani Exports Ltd. 30,000 7.8.2004 Adani Exports Ltd. 82,203 10.7.2004 M. Kumar Udyog Pvt. Ltd. 2,77,942 Not recorded Hazel Mercantile Ltd. 45,000 Not recorded Hazel Mercantile Ltd. 92,000 Not recorded Adani Exports Ltd. 22,500 14.8.2004 Hazel Mercantile Ltd. 1,27,500 Not recorded Adani Exports Ltd. 17,500 28.9.2004 Crescent International 37,500 Not recorded Adani Exports Ltd. 35,000 28.9.2004 TOTAL 8,62,245 3.1 As regards the entries made on page No.30 totalling Rs.40,18,324/- AO after necessary examination and after considering the explanation of the assessee found....
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....ed as incorrectly. Documents could not be partly recorded correctly and partly incorrect. He therefore held that unaccounted entries mentioned in the loose papers have been rightly assessed as unaccounted commission. Aggrieved by the said decision the assessee is in appeal before the tribunal. 3.4 We have heard both the parties in the matter. The Learned AR for the assessee reiterated the submissions made before lower authorities whereas the Learned DR placed reliance on the finding given in the orders of authorities below. We have perused the records and considered the matter carefully. The loose papers being the pages 29 & 30 were duly signed by the partners and found at the time of survey. We have already vide para 2.4 of this order rej....