TaxTMI 
TaxTMI 
2011 (5) TMI 681
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....der section 133A at the premises of the assessee 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 c....
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....thing but a self serving statement and accordingly he rejected 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 additio....
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....ted 4.3.2005 to the AO requesting for installment and even in this 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 mention....
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....arlier in para 2.4 that the allegations of cooking up of documents and 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 re....
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....naccounted commission income based on the page No.29. Name of the party 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 ....
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.... that the entries found on the loose papers were partly recorded in the books of account. Therefore in case of the part of the entries were found to be correct, the remaining part could not be rejected 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 th....