TaxTMI 
TaxTMI 
2017 (12) TMI 1523
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....ip firm consists of three partners viz. Shri Yusuf Nijamsaheb Mulla, Shri Hidayat Yusuf Mulla and Shri Mehboob Yusuf Mulla. A survey action u/s. 133A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was carried out at the business premises of assessee on 09th & 10th February, 2009. During the course of survey it was found that the assessee is not maintaining stock register, daily wages register, etc. During survey excess stock and excess cash was found. Statement of Shri Hidayat Yusuf Mulla one of the partners was recorded on 09-02-2009. Shri Hidayat Yusuf Mulla in his statement made disclosure on account of : i. Difference in cash Rs.6,77,780/-. ii. Difference in stock Rs.16,49,960/-. iii. Am....
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....eedings. The Assessing Officer neither rejected the books of assessee nor pointed any defect in the books. The ld. AR referring to the statement of Shri Hidayat Yusuf Mulla submitted that deceptive questions were asked from the partner of the assessee firm. Some of the questions were formulated in such a complex manner that Shri Hidayat Yusuf Mulla got confused and could not understand the question itself. However, he answered the questions to the best of his ability. Due to lack of understanding of the questions put to him, he gave some erroneous answers. The ld. AR contended that subsequently when the assessee realized that while recording statements he has committed certain errors under confusion, the statement was retracted. The ld. AR ....
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....e assessee in reconciliation of the stock and cash is nothing but an afterthought. The assessee produced books for the first time before the Assessing Officer on 26-12-2011 i.e. just before the time barring of assessment. There was no occasion/time for the Assessing Officer to verify the books. The ld. DR pointed that the assessee in his books has disclosed sales of Rs. 68,67,872/- from 01-04-2008 to 08-02-2009 and thereafter, from the date of survey i.e. from 09-02-2009 to 31-03-2009 the assessee disclosed sales of Rs. 44,50,843/-. The sales of the assessee for the last two months of financial year constitute almost 3/4th of sales of first 10 months. This shows that trading account maintained by assessee is not proper. The ld. DR further s....
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....ve perused the orders of the authorities below. The additions has been made in respect of amount deposited in the name of Nisar Y. Mulla in his saving bank account Rs. 5,55,549/-, excess stock found Rs. 16,49,960/- and excess cash found Rs. 6,77,780/-. 6. The first ground in appeal is in respect of unexplained cash deposits to the tune of Rs. 5,55,549/- in the saving bank account of Shri Nisar Y. Mulla. It has been contended that Shri Nisar Y. Mulla is having his own independent business, therefore, the amount deposited in his bank account is not related to the assessee's business. A perusal of the statement of Shri Hidayat Yusuf Mulla reveal that there is no mention of independent business of Shri Nisar Y. Mulla. Rather, he admitted tha....
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....0/- was added. The assessee explained that at the time of survey the books of account were incomplete and certain entries were yet to be made in cash book. The assessee updated the books after survey. After completing the books and reconciliation it was found that there is no difference in cash. It is an undisputed fact that the Assessing Officer has not rejected books of assessee before making the additions. The assessee purportedly furnished bills of all the purchases and sales. It appears that the authorities below have not made any effort to examine the documents furnished by the assessee. Addition in respect of difference in cash has been made merely on the basis of statement of one of the partners of assessee firm. In respect of di....