TaxTMI 
TaxTMI 
2015 (12) TMI 1686
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....ws: "2. For that the Ld.CIT(A) erred in confirming the addition of Rs. 4,66,300/- as undisclosed business income when admittedly no investment was found to have been made against four bills found in the course of survey and even otherwise no amount should have been added since the AO himself has held that the entire purchases made on four different dates was sold, and therefore there was no question of any investment for the purchase. 3. For that even otherwise no addition was called for since the assessee purchased the material on different dates and as such the sale price received was available for making payments, if any." 3. The Assessee is an individual. He carries on the business as wholesaler of grocery items und....
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....ed out that the delivery challans did not bear the signature of the Assessee acknowledging delivery of goods. 4. The AO did not accept the plea of the Assessee and he held as follows: "The submission of the AR is not at all acceptable. The assessee had issued the authorization letter to the deriver to take the delivery of goods from the supplier, Truck No. also mentioned therein. Photo copies of the relevant portion of authorization letter issued to the driver to take delivery of goods, delivery challan and Purchase invoice/bills/cash/credit memos have been placed on record. It is crystal clear that assessee has purchased goods of worth Rs. 466300/- during the F.Y. 2007-08. In light of the above discussion it is concluded that t....
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....t these stock of goods were ultimately sold by the Assessee. In such an event the entire value of the goods cannot be added as income and only the profit element i.e., gross profit declared by the Assessee in business for the relevant AY viz., 5% should be added to the total income of the Assessee. The learned DR relied on the order of the AO and CIT(A). 7. We have considered the rival submissions. The AO refused to believe the plea of the Assessee that the goods covered by the invoice and delivery challans were in fact not purchases actually made by the Assessee and were only pro-forma invoices for the reason that there were authorization letter to truck driver to take delivery of goods from the supplier and truck numbers had also been ....
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.... were properly maintained, no defects were found nor such books were rejected and the entire purchase and sales during the year were found recorded in the day to day stock register maintained which is not in dispute. 5. For that the Ld. CIT(A) erred in maintaining the addition by confirming the view of tile AO giving much weight to the statement submitted to the bank for availing cash credit on hypothecation basis when such statements used to be submitted long after the expiry of the relevant month, never subjected to the inspection by the banking authorities and the actual stock was fully verified from the stock register maintained and also found correct in accordance with the stock register even at the time of survey which took p....
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.... AO called upon the assessee to explain the aforesaid discrepancy. The submission of the A.R. was that the figure of stock lying with the banker as on 29.02.2008 ought not have been taken as the starting point for computing value of closing stock because the said figure given to the bank was not correct and was only for the purpose of availing of bank credit stock is always shown at higher figure." 11. The AO did not accept the above explanation put forward in respect of the aforesaid discrepancy. He was of the view that in the light of the facts and circumstances, discrepancy of closing stock worth Rs. 54,22,619/- was not disclosed by the assessee in his books of accounts for the A.Y. 2008-09. Therefore, the aforesaid discrepancy stock ....
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.... Epcon Computers Ltd. 292 ITR 630 (Mad) The books of accounts of the assessee were maintained purchases and sales were found supported - No addition. 2. (3 to 9) C.M.Roy & Sons ITA No. 1503/Kol/2008 Exhaustively dealing the issue the discrepancy give rise to the starting point of the Investigaiton-Vide para 6.8 3. (10 to 12) M/s. Das Industries 303 ITR 199 Bank never physically verified the stock. 4. (13 to 16) M/s. Devi Dayal Rice Mills 75 TTJ 24 Amritsar Addition not justified when no apparent mistake was noticed in the bank account and bank never verified physical stock. 5. (17 to 22) M/.s. Industrial Associates ITA No.309/K/2006 - 15. The learned DR relied on the order of the AO/C....