TaxTMI 
TaxTMI 
2014 (1) TMI 1800
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....d circumstances of the case and in law, the Ld AO has erred in invoking the provisions of section 153A of the Act without issue of a proper Warrant of Authorization which is condition precedent before initiating search proceedings. 2. On the facts and in the circumstances of the case and in law, the assessee contends that assessment as contemplated u/s 153A is not a de novo assessment and additions made therein has to be necessarily restricted to undisclosed income unearthed during search. 3. On the facts and in the circumstances in law, the Ld CIT (A) erred in rejecting the books of accounts u/s 145(3) of the Act, although no defects were discovered at the time of assessment proceedings. 4. On the facts and in the circumstances and in law, the Ld CIT (A) erred in confirming the addition made of Rs. 12,15,244/- as estimated undisclosed income on irrelevant and inconsequential. 5. On the facts and in the circumstances and in case, the ld CIT (A) erred in confirming the disallowance of deduction u/s 80G of Rs. 28,500/-. 6. On the facts and in the circumstances of the case and in law, the interest charges u/s 234A, 234B and 234C of the Act ....
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.... GP margins. He accordingly estimated and made addition of Rs. 14,13,628/- i.e., @ 27% of the Rs. 52,35,661/-. Contents of para 8.1 and 8.2 of the impugned order are relevant here and the same read as under: 8.2. Thus, the undisclosed income of the assessee is computed at Rs. 14,13,628/- (27% of Rs. 52,35,661/-). This undisclosed income is being added to the assessee‟s disclosed income in its profit andloss account and the tax liability is determined accordingly. Penalty proceedings u/s 271(1)(c) is also initiated in this regard." 4. Aggrieved with the above findings of the AO, assessee filed an appeal before the CIT (A). Assessee raised the legal issue of making assessment u/s 153A r.w.s. 143(3) of the Act. It is also a case of survey u/s 133A of the Act and not search action u/s 132 of the Act. Matter travelled to the first appellate authority. 5. During the proceedings before the first appellate authority, CIT (A) adjudicated the above legal issue as per the discussion given in para 3.1 to 3.3 of the impugned order. As per the CIT (A), considering the fact that the survey and search action was conducted simultaneously on the same day and also considering the....
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....mputation of income. The Assessing Officer in the last page of the assessment order where he has written 25.12% - 1.89% = 27%. It is an apparent mistake and actual figure should have been 23.23% by applying this ration to the amount of Rs. 52,35,661/-the undisclosed income will be worked out at Rs. 12,16,244/- in place of Rs. 14,13,628/- computed by the Assessing Officer. Since, the appellant has failed to submit the required details before the Assessing Officer during the assessment proceedings and even before me during the appellate proceedings, therefore, it is held that the Assessing Officer has rightly estimated the income by adopting the method of difference of gross profit between milk sale and gross profit of other milk products sold by the assessee. Therefore, the addition made of Rs. 14,13,628/- is restricted to Rs. 12,15,244/- and the balance amount of Rs. 1,97,384/- which is apparently wrongly calculated is deleted. Ground of appeal is partly allowed." 6. Aggrieved with the above findings of the CIT (A) on the validity of the assessment u/s 153A of the Act and invoking the provisions of section 145(3) of the Act and also part confirmation of the additions amounting t....
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....A) which are given in para 2.9, extracted above. Accordingly, ground no.1 and 2 relating to the legal issue raised by the assessee are dismissed. 10. Ground no.3 relates to invoking of the provisions of section 145(3) of the Act. In this regard, Ld Counsel argued that mere failure to submit the production registers does not invite the provisions of section 145(3) of the Act. He also mentioned that production details are maintained on certain loose sheets which would form as a basis for accounting the issuance and consumption of the raw material, milk, sugar etc. 11. On the other hand, Ld DR is critical of the fact that the assessee is under obligation to maintain the books of accounts as per the provisions of section 2, clause-12A of the Act. Loose sheets should not constitute books of accounts under the said clause 12A of the Act. Assessee is under obligation to maintain "other books" of accounts in the written form or as print-outs of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device along with the ledger till the cash books, account books and other books are required to be maintained. 12. We have heard both the parties and per....
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....rdingly, ground no.4 raised by the assessee is dismissed. 15. Ground no.5 relates to the disallowance of deduction u/s 80G of the Act. In the return, assessee claimed deduction u/s 80G amounting to Rs. 28,500/- in respect of donations to certain funds, charitable institutions. During the assessment proceedings, assessee could not substantiate the claim and the AO disallowed the said amount of Rs. 28,500/- by stating that the deduction u/s 80G is not allowable in the absence of receipt and eligibility certificate. Matter travelled to the first appellate authority. During the first appellate proceedings, after considering the submissions of the assessee, CIT (A) confirmed the addition made by the AO vide para 3.3 of his order which reads as under: "3.3. I have considered the submissions of the appellant, assessment order of the AO and facts of the case carefully. After considering the facts and circumstances, it is held that onus is on the assessee to submit the details and evidence before the AO before claiming any deduction. The appellant has failed to submit the receipt before the AO, therefore, the AO has rightly disallowed the claim of Rs. 28,500/-. Hence, the ground....