TaxTMI 
TaxTMI 
2016 (10) TMI 88
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.... 70,00,000/- made by the Assessing Officer on account of stock difference declared during the course of survey to Rs. 15,58,139/-. 2. On the facts and circumstance of the case, the CIT (A) erred in deleting the addition of Rs. 11,00,000/- made by the Assessing Officer on account of unexplained expenses on renovation of flat at Vikas Paradise, which was declared during the course of survey. 3. On the facts and circumstance of the case and in law, the CIT(A) erred in deleting the addition of Rs. 4,00,000/- made by the Assessing Officer on account of excess cash found during the course of survey which was not declared in the return of income filed by the assessee pursuant to the survey action. 4. On the facts and cir....
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.... on record, we find that in absence of any specific reason for fall in gross profit specifically in view of fact that finding of survey was that stock in business of assessee was found to be understated in books. Accordingly, CIT(A) considered that gross profit should be taken at the same rate as it was found on the date of survey i.e. @3.92%. When the same was put as was seen in the chart the difference of Rs. 15,58,139/- was found evident. It means assessee has understated closing stock as on 31.03.2007 by this amount i.e. Rs. 15,58,139/-. However, assessee has already carried forward this value of stock as reflected on 31.03.2007 at Rs. 3,72,36,668/- to 01.04.2007 to the next assessment year as opening stock, same was not disturbed and h....
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....accounts were incomplete and not written from January 2007 onwards as found by the survey team in respect of purchases and sales as well. Assessee has submitted that the survey party found cash on hand Rs. 4,25,272/-, whereas cash on hand as per books of accounts was Rs. 4,24,862/- which has wrongly been worked out by survey part at Rs. 24,863/-. This resulted into a difference of Rs. 4 lacs which was added in the income of assessee. As books of accounts were audited and this balance was reflected, same could not have been ignored. Since, entries in the books of accounts had not been found wrong as per which the cash balance was reflected at Rs. 4,24,862/- as mentioned above, only the difference between this and Rs. 4,25,271/- the cash foun....
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.... the shortfall to declare income of Rs. 1.15 Crores, was more than enough to take care of disclosure of unexplained renovation expenditure. No separate addition needed to the income declared by assessee. Assessing officer failed to appreciate these facts and made addition of Rs. 11 lacs to the net profit shown. This addition of Rs. 11lacs was made to separate additions of closing stock and cash on hand. As per said sheet containing explanation for disclosure, assessee's income during the year was Rs. 51,15,435/-, to purchase peace of mind, assessee claimed to have offered Rs. 1.15 Crores as her income at the same time reserving her right to be assessed at the actual income. It is the duty of Assesisng Officer to assess income at correct fig....