TaxTMI 
TaxTMI 
2014 (2) TMI 939
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....ide his order dated 31-12-2008 for assessment year 2006-07. 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming the action of Assessing Officer in making addition of unexplained investment of Rs.29,48,143/- on account of purchase of petro-product outside books of account. For this, assessee has raised following ground Nos.3 and 4:- "3.For that as per agreement with IOC, the purchases are restricted only with IOC, therefore, purchase of petro-product from outside books is not practicable in this line of business which proves as against filled with SBI the authenticity of stock-statement as on 31.3.2006, as such the estimated addition of Rs.29,48,133/- as unexplained investment u/s.69 of the I.T. Act ....
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....ture of business resulting in confirming the addition which is completely erroneous, perverse and illegal." 4. We have heard rival contentions and gone through facts and circumstances of the case. Brief facts leading to the above issue are that the assessee has two business premises - one at Rasulpur and other at Nachinda Bazar. The business of the assessee at Rasulpur runs under the name and style of M/s. Rasulpur Service Station being outlet for MSD & MS of Indian Oil Corporation (IOC). The business at Nachinda Bazar runs under the name and style of M/s. Sita Rani Mandal and this outlet is authorized to sell kerosene oil (IOC). A survey u/s 133A of the Act was carried out on the business premises of assessee on 17-11-2005. According to....
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....l argued that it is not clear from the assessment order as to how the AO has re-computed the stock and re-cast the trading account. Ld. counsel for the assessee stated that as on the date of survey on 17-11-2005 the excess stock including the lubricants at Rasulpur and Nachinda Bazar were excess to the extent of Rs. 6,51,422/-, the relevant details are as under:- K.oil 49,140 Lts HSD 1,10,942 Lts Lubricants 20,200 Lts MS (petrol) 2,24,347 Lts HSD 2,31,575 Lts Lubricants 15,218 Lts Ld. counsel for the assessee stated that on the date of survey i.e. on 31-10- 2005 as well as stock statement is almost similar, which is evident from the stock statement of the assessee and not the stock statement submitted ....
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....hing in sub-rules (1) and (2) shall apply to the delivery or dispatch of petroleum to the Defense Forces of the Union." Ld. counsel for the assessee also stated that the dealer is not allowed to buy sell or exchange the petroleum product and this is extract guidelines of the IOC vide 1.5 i.e., observance of statutory and other Regulations and relevant Regulation as under:- "iii) Dealer will not buy, sell or exchange petroleum products with any other dealer or anybody other than the principal Oil Company." Even as per the Department of Food and Civil Supplies of Government of West Bengal, the oil and lubricants is a licenced item which governed by West Bengal Lubricating Oil Licensing Order, 1967. Ld. counsel for the assessee stated....
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....tion i.e, closing stock of 3030 liters comes to Rs.1,41,561/- and that of HSD (diesel) of 11,171 liters @ Rs.32.63 comes to Rs.3,82,325/-.It means that the assessee has stock available to the extent of Rs.5,23,886/- as against stock found during the course of survey at Rs.6,51,422/- . So the difference being at Rs.1,27,536/- at best can be treated as unexplained stock, which can be added to the returned income of the assessee. In view of the above, we direct the Assessing Officer to restrict the addition on both the issues at Rs.1,27,035/- and balance we delete. Accordingly, these two issues of assessee's appeal are partly allowed as indicated above. 7. Next issue i.e., unexplained investment of Rs.17,622/- in Sahara India units and US-6....
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....of assessee is partly allowed for statistical purposes in terms as indicated above. Order pronounced in the open court 27/01/2014. ============= Document 1 Rasulpur service station Sita Rani Mondal Petrol Diesel K.oil Op. stock 7,872 Ltrs 15,205 Ltrs 35,142 Ltrs Purchase 20,000 Ltrs 5,92,600 Ltrs 19,950 Ltrs Sales Cl. Stock 24,842 Ltrs 5,95,303 Ltrs 55,092 Ltrs 3,030 Ltrs 11,717 Ltrs The Assessing Officer re-cast the trading account of MS (petrol) and HSD (diesel) and determined the stock as under:- MS (petrol) HSD (High speed diesel) Closing stock as on 31/10/2005 8,000 Ltrs 1,088,000 Ltrs (quantitative stock submitted to the bank) Add: 8,000 ....