TaxTMI 
TaxTMI 
2014 (5) TMI 935
X X X X Extracts X X X X
X X X X Extracts X X X X
....between income disclosed during the course of survey u/s.133A and the income offered for taxation in the return of income filed after survey. 1(ii). The learned CIT(A) erred in not appreciating that the assessee in the statement recorded during the survey u/s.133A has admitted to have earned unaccounted income of Rs.1,05,44,766/- out of unaccounted investment in excess stock of gold and silver and investment in investment in excess stock of gold and silver and investment in renovation of show room. It is a well settled law that the facts admitted need not be proved. The admission made is sufficient evidence and unless it is proved that the statement was recorded under pressure or coercion, the validity of statement exists, which is the rat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for A.Y.2006-07 declaring gross income at Rs.97,87,407/-. It was noted by the AO that at the time of survey following stocks as well as undisclosed income was found. "i) Unexplained excess stock of gold jewellery Rs.87,18,500/- ii) Unexplained excess stock of silver articles Rs.16,26,266/- iii) Unexplained investment in renovation of shop Rs. 2,00,000/- Rs.1,05,44,766/- 2.1 The AO's main objection was that at the time of survey it was admitted that there was undisclosed income of Rs.1,05,44,766/-, however, at the time of filing of the return the assessee has disclosed only a sum of Rs.83,47,440/-. The difference between two i.e., Rs.21,97,326/- ,i.e., (Rs.1,05,44,766 - Rs.83,47,440/-) was taxed in the hands of the assessee. 3. When the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....891 / 1,540). There is mistake in taking excess gold at 10925 instead of 9941.264 gms. The assessee had pointed out that the rate cannot be Rs.780/- but Rs.720/- as per the valuation f closing stock taken by the assessee himself in Trading account. The assessee had also taken the plea that in fact the valuation should be Rs.574/- because the valuation of stock is generally done at weighted average as per Para 6 of letter dated 11.04.2009, however, since the assessee himself has taken the valuation at Rs.720/- no further reduction is granted. The AO has wrongly worked out excess value both as regards penalty and rate. Addition on this count is to be deleted." 4. From the side of the Revenue, learned DR's vehement contention was that the AO....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ew that in a situation when few letters were written by learned CIT(A) to the AO to submit the remand report but no compliance was made although a final date was given then according to us learned CIT(A) was justified in finalizing the pending appeal. Further, it has also been demonstrated before us that although there was reference of additional evidence but in fact in true sense there was no additional evidence placed before learned CIT(A). The assessee's submission was that the correct rate of valuation ought to have been adopted by the AO. We, therefore, hold that there was no infringement of the provisions of Rule 46A of IT Act under the facts and circumstances of the case. 6.1 As far as the valuation is concerned, the AO's action to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....AO has held that the assessee was indulged in bogus purchases. The bills were procured only to explain unaccounted stock of the assessee. He has held that the existence of the bogus purchase bills were detected after the survey operation, therefore, the said amount of Rs.72,01,360/- was taxed in the hands of the assessee. 8. Before learned CIT(A), it was contested that in the books of account there was a contra entry of the said amount; hence, there should not be any addition in the hands of the assessee. It was argued before learned CIT(A) that as per the gold trading account on debit side there was an entry of purchase of the gold ornaments but simultaneously there was a credit entry of purchase return of the same amount and weight of gol....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eedings he has reversed the entry. Since, the assessee's account were not based upon the genuine evidences, therefore, the AO has rightly taxed the said amount in the hands of the assessee. 10. From the side of the respondent-assessee, learned AR has supported the order of learned CIT(A). 11. Before us a chart has been placed according to which the physical stock of gold was found at the time of survey weighing 11481.390 gms. As against that the weight of the gold as per books was only 1540.126 gms; hence, there was a difference of 9941.264 gms. It appears that to cover up the difference in weight the assessee has tried to procure the purchase bills from those parties, therefore, that attempt had failed because after survey it was detecte....