TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 1291
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....on the fact that the assessee himself had offered the profit of Rs. 5,98,212.00 @ 11.70% on unrecorded sales of Rs. 51,18,054.00 noted in the loose papers found during the course of survey, the ld CIT(A) allowed set off of Rs. 5,98,212.00 and balance addition to the extent of Rs. 44,05,090.00 was confirmed. Now, the assessee is in appeal before us. 2.1 The ld AR argued the matter at length and submitted through its written submission as under: 1. That physical stock was inventorised & was valued at Rs. 66,98,216.00 as on 03.02.2011. 2. A trading account was also prepared based on entries in books for sale & purchases & after applying G.P.% at 11.70% (As per last year) stock as on 03.02.2011 was determined at Rs. 16,95,184.00 as per books. 3. Thus the A.O. has alleged "EXCESS - STOCK" at Rs. 50,03,032.00 (66,98,216.00 - 16,95,184.00) & has preferred to make addition of same. It was also been alleged that since the assessee himself has surrendered the same during survey proceedings hence this is the final addition & no retraction based on evidences are to be accepted. Whereas survey does not empower any Income Tax Officer to examine any person on oath, Statements recorded u/se....
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....ion/difference in stock would be only Rs. 1,37,353.00 = (31,89,351.00 (stock should be as per physical) - 30,51,998.00 (revised book stock). Against this excess stock of Rs. 1,37,353.00 since the assessee has already surrendered a sum of Rs. 5,98,812.00 (being G.P.% at 11.70% on unrecorded sales of Rs. 51,18,054.00 as per loose papers) and Rs. 2,13,953.00 for unrealized sales/debtor & as per loose slips. Thus a sum of Rs. 8,12,765.00 (5,98,812.00 + 2,13,953.00) has already been considered as income voluntarily & due to "SET - OFF" no further addition to this extent needed. The A.O. while justifying his decision for not accepting the version of assessee for "REVISED VALUATION" are mainly that few purchases bills as mentioned in his order page 13 & 14 are of similar goods (nature) & there value are as similar as per physical inventory sheet; whereas these all bills are for different items & not for identical goods; the copies of bills & comparative chart is as enclosed; which justifies that A.O. has made a wrong conclusion & have ignored the facts. With regard to purchase bills found not posted in records, the ld AR submitted that the A.O. has alleged that such bills were not f....
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....ve facts & evidences the Ld. CIT(A) has stated that "it is seen that survey was conducted on 03.02.2011 and assessee had accepted the value of the closing stock as per the books of accounts Rs. 16,95,184.00 and value of the physical stock at Rs. 66,98,216.00 and assessee surrendered the difference of Rs. 50,03,032.00 as pointed out by the A.O. and A.O. has reproduced the statement of Shri Ankur Arora and Dilip Kumar Arora in this regard. The ld CIT(A) held that there was no immediate retraction on account of surrender. However, the assessee filed the letter dated 30.03.2011 retracting the surrendered made by claiming un-entered purchase bill and expenses in the books of accounts, excess valuation of the stock etc. such a delayed claim of the assessee itself shows that the said retraction is not reliable. Further, the assessee had contended as per letter dated 30.03.2011 (while the survey was conducted on 03.02.2011) that certain bills for purchase and transport expenses totaling to Rs. 13,56,814.00 were not posted in the books of accounts. However in the return field by the assessee on 14.07.2012, the assessee has claimed that purchases and transport expenses of Rs. 18,82,930.00 ....
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....Bambool wood (chiran + silly) The A.O. has given the assesse's contentions regarding excess rate of the wood adopted by the A.O. at the time of survey as per the table 1 on page no. 12 and 13 of the assessment order. As per this table, the assessee has valued all the three types of above woods between Rs. 125 to Rs. 135 per cubic Ft. only while at the time of survey the same were stated to be ranging from Rs. 326 to Rs. 450 per cubic ft. as adopted by the A.O. in this regard, it may be mentioned that the assessee's claim of the lower rates is based on the same bills of M/s Mahalaxmi Traders, biswan i.e. bill no. 74,66 and 69 whch were claimed to be not entered in the books of accounts and these bills have already been held to be unreliable as no such bills were found at the time of survey or claimed to be entered at the time of survey. It may be mentioned that the A.O. has quoted certain bills of other concerns regarding the purchase prices of the wood by the assessee in the table 2 on page 13 and 14 of the assessment order. In this bill, none of the wood purchased by the assessee falls in the range of Rs. 125 to 135 as claimed by the assessee and range noted in these bills varie....