2017 (3) TMI 1298

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.... be quashed; & (2) that without prejudice, the addition made/sustained by the authorities below on account of excess stock found in the year under appeal (after setting off income offered by the assessee in the asst. year 2011-12) being contrary to available facts and law requires to be deleted. 3. Briefly stated, the facts of the issue are as follows: The assessee, a partnership firm and a retail trader in jewellery, had furnished its return of income for the assessment year under dispute, admitting a total income of Rs. 13,77,910/- which was initially processed u/s 143(1) of the Act. Survey operation u/s 133A of the Act was undertaken in the business premises of the assessee firm on 14.6.2011. During the course of survey, excess sto....

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....lue of excess stock at Rs. 2105/gram for 266.9354 gram was worked out and, thus a sum of Rs. 56,55,999/- [266.9354 x Rs. 2105] was added to the income returned for the AY 2012-13 on account of excess stock found during the survey. While concluding the assessment, the AO had set off the income admitted on account of survey for the AY 2011-12 by the asssessee as adopted at Rs. 1700/gram and the difference of Rs. 24,66,120/- [Rs.13,77,910+56,55,999 = 70,33,909 - Rs. 45,67,790] was brought under tax net. 4. Aggrieved, the assessee firm took up the issue before the CIT (A) for consideration. After due consideration of the submissions made by the assessee firm, the CIT (A) dismissed the assessee's appeal for the following reasons, namely: "7.3....

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....alid, Som Dutt Builders (P) Ltd v. DCIT (ITAT, Kol) 98 ITD 78. In view of the above discussed judicial pronouncements, the ground taken on the reopening of the assessment is hereby dismissed. 8. As the third ground is related to the second ground which has already been adjudicated in the above paras, no separate adjudication is needed. The third ground is raised without prejudice to the above two grounds, on the additions made on account of valuation of the excess stock by adopting the rate at Rs. 1700/- instead of the rate prevailing as on date of the Survey. After careful consideration of the submissions made by the appellant, it is seen from the Survey reports sand the sworn statements of the appellant recorded during the survey, the ....

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....ition made/sustained by the authorities below on account of excess stock found in the year under appeal [after setting off income offered by the assessee firm in the year 2011-12] being contrary to available facts and law requires to be deleted. 5.1. On the other hand, the learned DR present submitted that the stand taken by the assessing officer as well as the CIT (A) were commensurate to the effect that the excess stock found during the course of survey had to be valued by adopting the prevailing market value on the date of survey. As such, it was submitted that the AO was within his domain to arrive at a conclusion in just and fair manner, the same requires to be sustained. 6. I have carefully considered the rival submissions, perused ....