TaxTMI 
TaxTMI 
2016 (12) TMI 681
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....bove additions made by Assessing Officer and partly confirmed by learned Commissioner of Income-tax (Appeals) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 2. Briefly stated facts of the case are that assessee is a partnership firm engaged in the business of Metal refining and melting. Return of income for Asst. Year 2008-09 was filed on 30.09.2008 declaring total income at Rs. 4,37,390/-. The case was selected for scrutiny assessment and notice u/s 143(2) of the Act was issued on 27.08.2009 followed by notice u/s 142(1) of the Act along with questionnaire duly served on assessee. Necessary details were furnished. 3. During the relevant Financial Year 2007-08 a survey u/s 133A of the Act was carried out at the business premises of the assessee on 12.02.2008. During the course of survey physical verification was carried out and value of stock amounting to Rs. 85,37,970/- was found. After allowing credit of Rs. 20,00,000/- towards stock given for job work total physically verified stock was valued at Rs. 1,05,37,970/- . During the course of survey a computer generated sheet showing pr....
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.... crores and trading turnover of Rs. 2.54 crores and the comparison should have been made in respect of manufacturing turnover only , as there was no trading turnover in the immediately preceding year. The manufacturing GP has reduced from 19.03% to 15. 72 %. i.e. the appellant did accept the fact that even after its explanation , there has been a fall in G P @ 3.31 % . The assessing officer also pointed out that there has been a fall in yield from 100.96% to 72.71%. The appellant furnished its explanation at the assessment stage and filed revised working, according to which, there has been a fall in yield from 98.8 % to 86.87 %. This means that fall in yield of 11. 93 % was accepted by the appellant. The reason for this fall in yield was claimed to be the variation in the quality of copper. The appellant also submitted during the assessment proceedings that had the yield been incorrect, the survey party would have found excess stock at the time of survey. However, the reasoning of appellant is not correct as there has been evidence of unaccounted sales in the seized / impounded material (supra). 6.5 As regards, the payments of Rs. 96,8007- and Rs. 1,78,607/-, totaling to Rs. 2,75,4....
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....long with rates as appearing in the PLA Register maintained. Ld. AR further submitted that the closing stock as per books at Rs. 16506231/- adopted by the Revenue authorities was merely on the basis of computer print out in which only an estimated figure of closing stock was punched in by the Accountant.. 8.1 As regards admission of unaccounted income of Rs. 60 lacs by the Managing partner of the firm ld. AR submitted that at that particular point of time necessary details were not known to the Managing partner and in front of him only computer generated sheet and the physical stock details were available out of which surrender was made. Later on when all the details were checked up including the quantitative details and excise record it was revealed that the book stock was only of Rs. 11567906/- and not Rs. 16506231/-. Ld. AR also submitted that there is no dispute with regard to the value of physical stock calculated by revenue authorities at Rs. 10537878/- and also there is no dispute for the application of GP rate of 15.72% applied by ld. Assessing Officer. Ld. AR requested that addition, if any, to be made should have been calculated by applying 15.72% GP rate on the excess s....
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....Rs. 2,75,407/- towards unexplained expenditure u/s 69C of the Act. 11. We observe that a survey was conducted on the business premises of assessee on 12.2.2008. Physical stock valued by Revenue authorities and not disputed by assessee was calculated at Rs. 105,37,878/-. Books stock adopted by Revenue authorities at Rs. 16506237/- was on the basis of computer generated profit and loss account for the period ended on 12.2.2008. Managing partner admitted unaccounted income of Rs. 60 lacs. Statement was retracted on 28.3.2008 on the basis of the fact that the books stock as calculated on the basis of quantitative, ratewise and valuewise records maintained for excise purposes was at Rs. 115,67,906/- which have been wrongly taken at estimated figures of books stock at Rs. 165,06,237/- prepared by the Accountant. During the course of assessment proceedings assessee was agreed for the GP addition only on the shortage of 10,30,028/- being the difference of books stock of Rs. 115,67,906/- and physical stock of Rs. 105,37,878/-. However, ld. Assessing Officer applied 15.72% of GP rate on the unaccounted sales for Rs. 60 lacs. 12. We further observe that assessee is maintaining regular books....