TaxTMI 
TaxTMI 
2014 (2) TMI 785
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....obacco Stores and engaged in the business of wholesale trading of Pan Masala and Tobacco. 4. In this case, survey under section 133A of the Act was carried out on 27.02.2009 wherein certain documents were found and inventorised and statement of Shri Kamlesh Modi, Son of the Assessee was recorded on 27.02.2009 wherein he admitted to undisclosed income of Rs. 50 lacs on account of unaccounted receivable and shortage of stock in the hands of the Assessee which was over and above her regular income. Assessee thereafter filed her return of income on 29.09.2009 for A.Y. 2009-2010 declaring total income of Rs. 16,87,876/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 29.12.2011 ....
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....ether. 8. During the course of assessment proceedings, A.O noticed that during the course of survey, Assessee had admitted additional income of Rs. 50 lacs on account of receivable and shortage of stock as unaccounted income which was also accepted in the statement of Shri Kamlesh Modi, the son of the Assessee which was recorded u/s. 133A of the Act. The Assessee had voluntarily offered the same for tax and Assessee had also agreed to pay the taxes thereon. However, in the return of income filed by the Assessee, A.O. noticed that Assessee has disclosed income at Rs. 15 lacs as against Rs. 50 lacs admitted during the course of survey. The Assessee was therefore asked to justify the under stated income of Rs. 35 lacs. The Assessee interalia ....
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....ding as under:- 8.1 The appellant's contention has been examined. The appellant has disclosed a turnover of Rs 2. 36 Crores on which, a gross profit of only 2% has been shown. The expenses in profit & Loss A/c after gross profit are negligible and have been shown at Rs 1,42,226/- including misc expenses of Rs 52,263/-. Therefore, prima facie not only the gross profit shown is very low, but also the expenses claimed after gross profit are unreasonably low to sustain a turnover of Rs. 2. 36 Crores. 8.2 In this background, it is noticed that impounded diaries contained a record of 'unaccounted sales' from 16.01.2009 to 27.02.2009. (i.e. the impounded diaries covered a period of about 43 days and the total unaccounted sales comes to Rs 21,03,....
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....ed capital of Rs 15,00,000/- , gross profit of unaccounted sales of Rs 18,00,000/- and suppression of gross profit on disclosed sales of Rs. 19,00,000/-, the total unaccounted income comes to Rs. 52,00,000/- which is comparable to the declaration of Rs 50,00,000/- made by the appellant. Therefore, it cannot be said that declaration made at the time of survey, was excessive, unreasonable, and had no connection with evidence found during the course of survey. In fact, it was a voluntary disclosure, and an estimation of unaccounted income earned for the entire year, on the basis of evidence found for 43 days. Therefore, the appellant 's contention is rejected in principle. However, as discussed supra, the appellant has shown negligible expense....
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..... Ld. D.R. further submitted that CIT(A) has wrongly considered the number of days to be 43 whereas the actual number of days were 18. CIT(A) should therefore worked out the unaccounted sale on basis of 18 days and not 43 days and in that eventuality the turnover would work out to higher amount and for which he pointed to page 11 to 16 of the Paper Book of Assessee. It was further submitted that after the declaration was made, no efforts were taken by the Assessee and the Assessee kept silent in respect of receivable and shortage of stock as estimated which was now treated by the Assessee only as cash sales. He further submitted that there is nothing on record to show that any threat or coercion was exerted on Assessee to get a confession a....