2016 (1) TMI 576

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....f rs.58,598/- u/s 69A of the Income-tax Act, 1961, made on account of alleged excess cash found during the Survey operations in spite of the fact that the said excess cash was duly explained by late Shri Ramautar Prasad Verma and his son by filing proper cash-flow statements." 4. The assessee is an individual. He carried on business on trading in all kinds of jewellery. There was survey operation u/s 133A of the Act carried out by the Revenue on 07.03.2005. In the course of survey cash amounting to Rs. 2,94,565/- was found. The cash as per the cash book was only Rs. 2,35,967/-. The assessee explained that out of cash found during the course of survey a sum of Rs. 45,000/- belongs to his son Shri Arun Kumar Verma, who was also looking after....

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....ddition of Rs. 1,29,662/- u/s69A of the Act, made on the alleged ground of unexplained jewellery found during Survey, without properly appreciating the reconciliation furnished by the appellant. (b) Without any prejudice to the above ground, the learned CIT(A) erred in confirming the ground taken up before him as a whole, although in the operative portion of his order, he had actually allowed relief of Rs. 28,338/-." 7. At the time of survey 30404.830 gms of gold was found. Gold as per the stock register was 26,154.703 gms. There was excess gold to an extent of 4250.127 gms. The assessee explained that 4051.500 gms of gold was received from M/s.Emarald Jewellers, Coimbatore and that the normal practice in the trade was that the stock rec....

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.... which addition can be deleted. I also do not find the item-wise tally of the stock as per physical verification at the time of survey on the stock as per the stock register of the assessee. It is therefore not possible to come to a conclusion that the difference is only due to incorrect weighing of the items of jewellery. Therefore, I confirm the order of CIT(A) in this regard. Ground No.3(a) and (b) of the assessee is dismissed. 10. Ground No.4 raised by the assessee reads as follows :- "4. On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming the addition of Rs. 2,76,810/- made out of payments of Commission, simply by commenting that the recipients of commission had not been found at the given addre....

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.... are placed at pages 22 to 27 of the assessee's paper book. The bills merely refer to commission on sales and making charges for a particular period. The evidences filed by the assesse cannot be accepted by the AO as it is and therefore AO thought it fit to summon the persons to whom the commission was paid. The AO could not succeed to procure the persons of the recipients of the commission. The assessee also did not make any efforts to produce these person before the AO for examination. In such circumstances I am of the view that disallowance of commission was rightly made by the revenue authorities. Ground No.4 of the assessee is dismissed. 13. Ground Nods. 5 and 6 raised by the assessee read as follows : "5. On the facts and in th....