TaxTMI 
TaxTMI 
2014 (1) TMI 130
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....ppeals)-IV, Rajkot in the case of M/s M.P. Scrap Traders for the assessment year 2007-08 by raising grounds in respective appeals as under: "The grounds of appeal mentioned herein under are without prejudice to each another. 1. That order of the learned CIT(A) is bad in law and on the facts of the case and is based on the surmises and conjecture only and without considering the facts and submission made. 2. The ld. CIT(A) erred in law in confirming addition of Rs. 6 lacs as disclosed in statement under section 133A of the Act but retracted thereafter. 3. On the facts and in the circumstances of the case, the Ld CIT(A) has erred in endorsing the findings recorded by the A.O. in connection with the retraction are perverse and beyo....
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....ed cash as well as unexplained excess cash within the meaning of Section 69A of the I.T. Act, 1961 and adding in total income of the appellant. 3. That, learned CIT(A) has erred in law and on facts in confirming the addition in the income at Rs. 25,50,320/- u/s 69B of the I.T. Act, 1961 on account of alleged unexplained excess business stock was found during survey and appellant failed to explain excess stock in the hands of the appellant firm and has wrongly made the addition to the total income. 4. That, the orders and finding of the authorities below are based purely on conjectures, surmises, suspicious and hypothesis and are liable to be set aside. The finding in connection with the retraction of erroneous admission during the cou....
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....s. 6 lacs as unexplained investment in the year under consideration being the year of survey. That apart, the assessee's explanation that after maturity of fixed deposit receipts, the said amount of investment in fixed deposits was claimed to have been invested by the assessee in the following assets i.e. (i) investment in residential building/furniture Rs. 6,00,000/-, (ii) gift to Hiren Dattani Rs. 1,00,000/-, (iii) investment in Gold Bullion Rs. 27,34,500/-, (iv) investment in stock held by partnership firm M/s M.P. Scrap Traders Rs. 25,50,320/-,(v) excess cash found in business premises Rs. 7,00,500/- and (vi) balance amount stood utilized towards payment of taxes for the aforesaid years, in which, it was surrendered. The A.O. merely acc....
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....who is also the appellant before this Tribunal, however, has acted on the basis of the surrender made during the survey proceedings and disclosed the said amount as his income in the returns of income filed for the assessment years 2000-01 to 2004-05. Therefore, there remains nothing with the revenue authorities to say that the assessee has retracted the statement. Resting their conclusion by the A.O. as well as by the Ld. CIT(A) is thus on erroneous assumption of facts on record. In so far as second affidavit of the assessee of the even date i.e. on 23rd January, 2007 is concerned, the said affidavit is in consonance with the assessee's reply to question No. 9 regarding application of the amount realized of the undisclosed investment to wh....
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....raction, the additions have been sustained in the hands of both the appellants. 5. We have heard parties with reference to material on record. Shri Kishorebhai Mohanlal Karia, partner of M/s M.P. Scrap Traders has admitted of unexplained investment in fixed deposits and deposits in bank accounts and surrendered the same as his income for returns of income filed for assessment years 2000-01 to 2004-05. The total surrender made during these years amounted to Rs. 96,38,410/-. The said Shri Kishorebhai Mohanlal Karia in his reply to question No. 9 in his statement recorded during the course of survey proceedings, informed the survey party to submit application of the amount of realization of the aforesaid investments on a later date. This wa....
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.... stated to have been explained out of application of the realization of the aforesaid fixed deposits. For this purpose, his affidavit was filed before the authorities below. There was no material found as a result of survey indicating unexplained investment in the construction of house property or purchase of furniture thereof for Rs. 6 lacs except that there was admission by the assessee in his statement. Likewise the itemwise stock inventory is not shown to have been taken physically by the survey party. Merely in his statement, the excess stock found in the hands of the partnership firm stated in the said statement was taken as surrender thereof separately over and above the excess cash found. The assessee in his reply to the show cause ....