TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 1078
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....sessment order u/ s 144 by recording contradictory findings& even further perverse in its nature . 2. Because the action of the C1T(A) is under challenge on facts and law for disallowance of salary Rs. 96,000/- and interest Rs. 97,737/- to the partners invoking provisions of section 184(5). 3. Because the action of C1T(A) is under challenge on facts and law in upholding the addition of Rs. 20.00 lacs for the surrender retracted which is even dehors the material on record for which the findings have not been returned. 4.a) Because the action of C1T(A) is under challenge on facts and law regarding addition of Rs. 3,45,000/- u/s 68 which is behind the back of assessee after declining to appreciate with holding of the records (for being provided) by the Assessing Officer. b) Because the action is in violation of rules of natural justice and the settled principles of law. Even further the action is arbitrary and misutilisation of the powers. 5.a) Because the action of C1T(A) is under challenge on facts and law regarding addition of Rs. 97158/- for payment treated outside books. b) Because the action is in violation of rules of natural justice and the settled principles of la....
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....case are that survey under section 133A of the Act was carried out at the premises of the assessee on 27.9.2005, under which the assessee surrendered sum of Rs. 20 lacs over and above its regular income. However, the said surrender was not declared in the return of income and the assessee claimed that it was retracted by written pleadings dated 6.1.2006. As per the assessee surrender of Rs. 20 lacs comprising of surrender of Rs. 15 lacs in cash and Rs. 5 lacs for stock was made under pressure in haste and, therefore, the same was retracted by letter dated 6.1.2006. The assessee further pleaded that no query regarding discrepancy in the stock was put to the partners of the assessee firm while recording the statement during the course of survey and the said surrender was retracted vide letter dated 6.1.2006. In respect of the surrender of cash of Rs. 15 lacs, the assessee claimed that there is no discrepancy in the cash and no such discrepancy was put to the partners during the course of survey and the retraction of surrender was made vide letter dated 6.1.2006 and initial surrender was made under pressure and haste. The Assessing Officer had completed the assessment ex-parte under s....
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....ventory was prepared by the survey team and signature of Shri Avtar Singh were taken, whereas on the stock list prepared by the survey team, signature of Shri Gurdev Singh was taken. Further statements of Shri Gurdev Singh and Shri Gurvinder Singh were recorded and no statement of Shri Avtar Singh, whose signature were taken on cash inventory and surrender letter, was recorded during the survey. Also no query regarding discrepancy in cash was put to the persons whose statements were recorded during the survey. 9. The learned D.R. for the Revenue pointed out that on the date of survey, cash book was written up to 5.9.2005 and questions were put to the partner of the firm on 27.9.2005 under which the assessee admitted that the books of account were written only up to 5.9.2005. The learned D.R. for the Revenue further pointed out that during the course of survey cash inventory was prepared and the list of the said inventory was placed at page 103 of the Paper Book. The learned D.R. for the Revenue further invited our attention to the surrender letter filed by the assessee, which is placed at pages 61 and 62 of the Paper Book. In view of the said surrender of Rs. 20 lacs the additiona....
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....as returned back to the assessee after counting the same. The perusal of the said list reflects that sum of Rs. 12 lacs was found from the steel almirah and the balance sum was found from the table drawers of the assessee. The denomination of the currency found is also mentioned in the said sheet placed at page 103 of the Paper Book. The list of the stock inventory found during the course of survey is placed in the Paper Book. The assessee claimed that vide letter dated 6.1.2006 it had retracted from its surrender. The assessee thus did not include the said surrender amount in the return of income. The plea of assessee before us was that no defects were pointed out either in the books of account or the sales and hence there was no merit in the said addition made on account of the stock surrendered and similarly there was no merit in the addition made on account of cash surrendered of Rs. 15 lacs. 11. In the facts of the present case survey team had visited the business premises of the assessee and had prepared a list of stock found from the possession of the assessee and also the list of cash found from the business premises of the assessee. Admittedly, both the stock and surrende....
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....ission was wrong and also that the retraction should be at the earliest point of time or within the reasonable time. Further the learned D.R. for the Revenue has placed reliance on the ratio laid down by the Hon'ble Punjab & Haryana High Court in Harbhajan Singh Vs. CIT in ITA No.17 of 2012 - order dated 7.5.2012 and we find that the issue before us is similar to the issue before the Hon'ble Punjab & Haryana High Court where in the facts before the Hon'ble High Court cash of Rs. 33,40,950/- was found during the course of survey and if the assessee had no explanation to offer, sum of Rs. 30,40,950/- was surrendered by the assessee. The Tribunal confirmed the addition observing as under: "15. The third plank of the surrender at the time of survey was the cash found from the premises of the assessee. The assessee failed to explain the source of cash of Rs. 33,40,950/- found during the course of survey and as he had no explanation to offer, sum of Rs. 30,40,000/- was surrendered by the assessee. The said surrender as pointed out in paras hereinabove was not on account of the total cash found but on account of the difference in cash as per the books and cash found at the t....