TaxTMI 
TaxTMI 
TaxTMI 
2014 (5) TMI 466
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....n deleting the addition of Rs.15,55,285/- on account of voluntary disclosure of unaccounted income made by the Assessing Officer. 2) On the facts and in the circumstances of the case and in law, the CIT(A)-IV, Surat has erred in deleting the addition of Rs.1,00,000/- lump-sum addition on account of fall in GP rate. 3) On the facts and circumstances of the case and in law, the CIT(A)- IV, Surat ought to have upheld the order of the Assessing Officer. 4) It is therefore, prayed that the order of the CIT-IV, Surat may be set aside and that of the Assessing Officer restored. 2. Briefly stated facts are that a survey u/s.133A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was conducted at the business premises of the asse....
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....DR submitted that the ld.CIT(A) was not justified in deleting the addition. He submitted that the assessee himself has given the value as per his statement during the course of survey. The assessee cannot be allowed to take a different stand that was taken during the course of survey. He submitted that the AO was justified in making the addition. 4. On the contrary, ld.counsel for the assessee Shri J.P. Shah submitted that there is no dispute in respect of the quantity of stock but dispute is with regard to valuation adopted by the Revenue and the value declared by the assessee by furnishing the requisite documentary evidence. He submitted that during the course of survey, the value of the stock was worked out on the basis of estimation on....
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....tress his contention, he relied on the judgement of Hon'ble Apex Court rendered in the case of CIT vs. A.Raman & Co. reported at 67 ITR 11 (SC). 5. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. The undisputed fact remains that the assessee has furnished the supporting evidences in respect of the sale value of the unaccounted stock. The AO has not made any enquiry on the evidences given by the assessee. The Hon'ble Apex Court in the case of CIT vs. Raman & Co. reported at 67 ITR 11 has held that the law does not oblige a trader to make the maximum profit that he can out of his trading transactions. Income which accrues to a trader is taxable in his hands :....
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....from unexplained stocks discovered during survey. This finding on fact of ld.CIT(A) is not controverted by the Revenue by placing any material on record to rebutting the claim of the assessee that the unaccounted stock was sold at higher than Rs.1,09,19,609/-. The argument of the Revenue is that the unaccounted stock has been sold within a short span of time which gives rise to suspicion. This argument of the Revenue is not acceptable in view of the fact that no enquiry has been made by the AO to ascertain whether the unaccounted stock was sold to the parties and at a value as declared by the assessee. The Revenue has not brought any material on record suggesting that the claim of the assessee is false or without any basis. Therefore, we do....
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....ison of G.P. from cloth processing on job work basis for the two years should be made after the manufacturing and operations expenses attributable towards own finished fabrics are reduced. The assessee submitted calculation of G.P. on this basis which showed that G.P. for the year on processing job work activity was 13.52%. It was also submitted that any proposed addition on account of fall in GP be telescoped I the disclosure of income of Rs.1,09,19,609/-. The A.O. mentions that the argument of the assessee is found to be broadly acceptable but fall in G.P. indicates suppression of income and therefore made a lump sum addition of Rs.1,00,000/-. During the course of appeal proceedings similar arguments as in assessment were forwarded. Havin....