TaxTMI 
TaxTMI 
2015 (10) TMI 12
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....ed in their statements that the same represented the unaccounted share transactions of the assessee company. 2. The assessee is in the business of trading of shares and stock broking. The assessee files its return of income on 30.9.2008 declaring total income of Rs. 6,21,87,380/-. The case was scrutinized under section 143(3) of the IT Act. On 19/07/2007 survey under section 133A of the IT Act, 1961 was carried out at the business premises of the assessee company and M/s. Maverick Commodity Brokers Pvt. Ltd. During the course of survey proceedings, statement of Shri Mukut Behari Agarwal, Director in the assessee company was recorded. In the statement so recorded, in answer to question nos. 41 & 42 Shri Mukut Behari Agarwal, Director stat....
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.... purposes. However, this undisclosed income admitted during the course of survey proceedings had not been disclosed in the return of income filed for the assessment year under consideration. Therefore, AO issued show cause notice on this issue which was replied by the assessee vide letters dated 6.10.2010 & 18.11.2010 wherein it was submitted that income was admitted without referring the books of account and further without linking and co-relating the transaction with the books of account maintained. M/s. Sandeep Stock Pvt. Ltd. is a private limited company and is a separate legal entity with independent Directors who are not related to the assessee company in any manner. All the transactions appearing in the current account of M/s. Sandee....
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....ction from income accepted as undisclosed and not recorded in books of account amounting to Rs. 80,00,000/- during the course of survey proceedings. He also relied on the following decisions :- Addition made on the basis of admission by assessee - justified. Hira Singh and Co. vs. CIT (HP) 230 ITR 791. Manharlal Kasturchand Chokshi vs. ACIT (ITAT, Ahd) 61 ITD 55. Hiralal Maganlal & Co. vs. DCIT (ITAT, Mum) 96 ITD 113. Ravindra D. Trivedi vs. CIT (Raj) 215 CTR 313. Thus he made addition of Rs. 80,00,000/- to the income of the assessee. 4. Being aggrieved by the order of AO, the assessee preferred appeal before ld. CIT (A) who had deleted the addition by observing as under :- "4.5. I....
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....tors are not related to the directors and promoters of the appellant company. 4) All the transactions were conducted by M/s. Sandeep Stock Pvt. Ltd. through its bank accounts. 5) The books of accounts maintained by M/s. Sandeep Stocks Pvt. Ltd. were verified subsequently by the AO as per her remand report wherein she has observed that all the transactions in M/s. Sandeep Stock Pvt. Ltd. were verifiable and corresponded with its ledger a/c maintained in the books of the appellant company. 6) M/s. Sandeep Stock Pvt. Ltd. is an independent entity and an assessee who has reflected the income from these transactions in its return of income. 4.6. In view of the above facts and the verification done by the AO as....
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....made basis for making additions in the absence of any corroborative evidence, more particularly when the same are recorded on oath and copies of which are never provided to assessee. 3) That the surrender in the statements recorded during survey proceeding was given by the director of assessee without referring or reconciling the transactions in the books of account of appellant company. 4) That M/s. Sandeep Stock P. Ltd. is a private limited company and is a separate legal entity, whose PAN, details of registered office and copy of the client account containing daily transaction details, margin account containing details of daily margin receivable/payable along with daily balance outstanding was submitted before the ld. A....
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....essee had made purchase of Rs. 2,08,48,49,137.34 and sale of Rs. 2,45,04,24,562.13 on behalf of the company M/s. Sandee4p Stocks P. Ltd. and the transactions were duly reflected in the statements of accounts of HDFC Bank furnished by M/s. Sandeep Stock P. Ltd. 3) After cross verification through the ledger accounts, it was gathered that one to one entries of debit/credit of M/s. Sandeep Stock P. Ltd. in four different ledgers were tallying with the ledger account of M/s. Maverick Share Brokers P. Ltd. for the year under appeal. Thus, it can be seen that in the remand report, the ld. AO has clearly admitted that the transactions as appearing in the books of accounts of the assessee company in the ledger account of M/s. Sand....