2015 (7) TMI 867

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....00/- representing unaccounted cash purchases which had been disclosed by a partner of the Assessee firm in course of the survey u/s.133A of the I.T. Act. In doing so, the CIT(A) ignored the fact that such disclosure was made over and above the excess stock found during the survey, and the onus was on the part of the Assessee to show that such purchases had not been sold outside the books of account and that, the unaccounted stock found during the survey included such unaccounted cash purchases.   2. The Ld. CIT(A)-XX, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 1,77,010/- representing the G.P. earned from the sale of the unaccounted purchases, on the sole ground that the Assessing Officer had been unable to....

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....m did not added Rs.l,77,010/- from stock declaration and Rs.l1,46,000/- out of undisclosed purchase in cash.   On being asked to the AR of the assessee firm, it was submitted vide his letter dated 03-11-2009 that "As per Profit & Loss account, we have shown credit of Rs. 5,79,000/- respect to assets and Rs. 32,56,207/- for stock of material (finished & raw) against total declaration of Rs. 51,58,217/-on 28-2-2007.   (1) Rs. 11,46,000/- purchases made in cash & not recorded (Raw cotton purchases) are included in excess stock on the day of stock verification on 28-2- 2007.   (2) As excess stock found on date 28-2-2007 remain as closing stock as on 31-3-2007, why GP Rs. 11,46,000/0- to be added to undisclosed amount. Thus, we....

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....he assessee. Same has been opposed on behalf of Revenue. Learned Departmental Representative requested to set aside the order of CIT(A) and that of Assessing Officer be restored. On other hand, learned Authorized Representative supported the order of CIT(A).   2.2 After going through rival submissions and material on record, we find that assessee is a partnership firm. For the year under consideration, assessee had filed return of income on 06/11/2007 declaring total income at Rs.Nil. The case of assessee was taken up of for scrutiny and notices u/s. 143(2) was issued on 15.09.2008. Assessing Officer made total addition as discussed above. In appeal, CIT(A) observed that Assessing Officer had made discussion only about purchase record....

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.... made unaccounted purchases of Rs. 11,46,000/-. Assessing Officer held that since purchases were unaccounted and same was sold before the survey addition on account of gross profit in such unaccounted sales was also required to be made.   3.1 Matter was carried before the First Appellate Authority and having considered the statement of assessee, CIT(A) deleted the addition in question. Same has been opposed on behalf of Revenue inter alia submitting that order of CIT(A) on the issue be set aside and that of Assessing Officer be restored. On other hand, learned Authorized Representative supported the order of CIT(A).   3.2 After going through rival submissions and material on record, we find that addition has been made relating t....