2014 (10) TMI 845

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..... Briefly stated, assessee is engaged in the business of trading of auto, tractor spares and agricultural implements. There was a survey under section 133A on 28.02.2008 and stock to an extent of Rs. 39,28,298 was not found as assessee failed to explain the reasons for short-fall. It seems the Managing Partner admitted an amount of Rs. 50 lakhs for the A.Y. 2008-09 in the course of survey. However, by filing the return of income assessee declared income of Rs. 17,20,015 which include amount of Rs. 10 lakhs credited to P & L Account as additional income. On the reason that assessee has not admitted balance Rs. 40 lakhs disclosed in the course of survey, the A.O. made the addition of Rs. 40 lakhs to the income returned after giving opportunit....

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....account of survey. Under the circumstances, the appellant is of the opinion that there is no basis for the assessing officer for making the addition of Rs. 40,00,000/- except the statement recorded from the partner of the firm at the time of survey proceedings. There are no other discrepancies pointed out by the assessing officer and the purchases are verifiable; with VAT returns filed, as per the appellant. There is no relevance for the statement recorded during survey proceedings u/s.133A, without pointing out any evidence/ information that points out to the generation of unaccounted income, as per the appellant. I am of the considered opinion that there is considerable strength in the argument of the appellant and is supported by the jud....