TaxTMI 
TaxTMI 
2014 (5) TMI 511
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....;the Act'). Under such notice he seeks to reopen assessment of the petitioner for the assessment year 2006-07, which was framed after scrutiny. The impugned notice is, thus, issued beyond a period of four years from the end of relevant assessment year. 3. At the request of the petitioner, the respondent supplied reasons recorded by him for issuing the impugned notice. Such reasons read as under : "The assessee firm was engaged in trading and manufacturing of jewellery and resale of jewellery and related items. A survey under section 133A of the Income Tax Act, 1961 was carried out on 10.03.2006 at the business premises of the assessee during which the assessee firm had made a disclosure of Rs.10352950/- but returned undisclosed in....
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....ose truly and fully all material facts for assessment, only then would the Assessing Officer be authorised to issue notice for reopening, which was done in the present case beyond a period of four years from the assessment year under consideration. This question shall have to be examined in the context of reasons recorded by the Assessing Officer for issuing notice. Such reasons when summarised pertain to the Assessing Officer's objections to the disclosure made by the assessee in the return filed after the survey operations. According to the Assessing Officer, the undisclosed stock of Rs.1,03,53,956/-which formed a part of the declared undisclosed income of Rs.1,29,36,304/-, was not sufficient and full disclosure since the same represe....
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....at the rate of 15% was made to arrive at the cost price of the physical stock belonging to us on the date of survey. The above working was properly explained by our Karta vide his Answer No.11 on pages No.17 and 18 of his statement recorded during survey on 10.03.2006. With a view to submitting before your goodself as to how the cost price of the physical stock found on the date of survey was worked out, the below stated working of such cost price is submitted. Physical stock found on the date of survey as per Annexure SF 2,13,74,575/- Less : Value of stock belonging to the Sister concern Shri Sai Jewellers. 17,98,000/- 1,95,76,575/- Less : Gross profit at 15% 29,36,486/- Cost price of physical stock ....
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....f receivable not recorded in our books of account on the date of survey. With a view to enabling your goodself to have the precise details of disclosures, following table is submitted. Particulars Amount admitted during survey Amount disclosed through our return of income Excess disclosure made by us voluntarily Stock 1,03,52,950 1,03,52,950 - Cash 26,785 3,33,354 3,06,569 Receivables - 22,50,000 22,50,000 Total 1,03,79,735 1,29,36,304 25,56,569 From the above details your goodself will found that through our return of income we made disclosure of income of Rs.1,29,36,304/-as against the admitted disclosure of Rs.1,03,79,735/-. A statement indicating accounting e....