TaxTMI 
TaxTMI 
TaxTMI 
2014 (2) TMI 939
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....ent 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 is completely arbitrary, unjustified, unwarran....
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....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 assessee as well as Assessing Officer, during the cours....
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....d 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 to the bank. According to Ld. counsel for the assessee, there is no difference in the stock statement and this being a controlled item i.e. kerosene oil and HPD (petrol) all the items are cont....
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....ll 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 that the complete details of godowns storage place premises etc., are mentioned in the licence nothing more can be attributed to the assessee what is available with her. Ld counsel for the assessee, in view ....
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....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-64 and also the credit entry in the bank account No.4700 with Balageria Central Co-Operative Bank Ltd., Nachinda Bazar Branch for an amount of Rs.1.50 lakh. For this, assessee has raised following ground No. 7 & 8....