TaxTMI 
TaxTMI 
TaxTMI 
2018 (4) TMI 566
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....truction had filed its return of income on 16.02.2012, declaring total income of Rs. 53,98,130/-. The return of income filed by the assessee was processed as such under Sec. 143(1) of the Act. The case of the assessee was thereafter taken up for scrutiny assessment under Sec. 143(2). 3. The issue involved in the present appeal lies in a narrow compass. Survey action under Sec. 133A was conducted on the assessee on 16.03.2011. During the course of the proceedings the survey team found raw materials valued at Rs. 51,25,042/- which were neither recorded in the books of accounts, nor any purchase bills supporting the same were found. The assessee on being confronted with the aforesaid discrepancy offered an additional income of Rs. 51,25,042/- for the year under consideration. The return of income filed by the assessee for the year under consideration, viz. A.Y 2011- 12, declaring an income of Rs. 53,98,130/-, as claimed by the assessee was inclusive of the additional income of Rs. 51,25,042/- which was offered in respect of the aforesaid unaccounted excess stock of raw materials found at its premises during the course of the survey proceedings. However, the A.O during the course of t....
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....rom the net profit of Rs. 53,98,134/- shown by the assessee it could safely be gathered that the same was inclusive of the disclosure of additional income of Rs. 51,25,042/- made during the course of the survey proceedings. The assessee further claimed that on a reference made under Sec. 142A by the A.O to the District Valuation Officer-I, Mumbai, the latter vide his report dated 27.02.2014 (received after the passing of the assessment order) had valued the WIP on 31.03.2011 at Rs. 3,50,80,935/-. The assessee placed on record the statement of opening and closing WIP for the year ending 31.03.2011. The bifurcated details of the closing W.I.P of Rs. 3,50,80,935/- on 31.03.2011 revealed that the same included the value of the unaccounted excess stock of raw materials of Rs. 51,25,042/- found during the course of the survey proceedings, the source of investment of which was during the course of the said proceedings disclosed by the assessee as its additional income for the year under consideration. It was submitted by the assessee that after making the disclosure of the excess stock of Rs. 51,25,042/- the same was debited to the profit and loss account under the head purchases, with a ....
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....bservations deleted the addition of Rs. 51,25,042/- made by the A.O. 6. The revenue being aggrieved with the order of the CIT(A) had further carried the matter in appeal before us. The Learned Authorized Representative (for short 'A.R') placed heavy reliance on the order passed by the CIT(A). It was submitted by the Ld. A.R that as the assessee had already offered the value of the unaccounted excess stock of raw materials of Rs. 51,25,042/- found during the course of the survey action for tax, therefore, the further addition of the said amount by the A.O had led to double addition in the hands of the assessee, which was rightly deleted by the CIT(A). 7. We have heard the authorised representatives for both the parties, perused the orders of the lower authorities and the material available on record. We find that it remains as a matter of a conceded fact that unaccounted excess stock of raw material of a value of Rs. 51,25,042/- was found at the premises of the assessee during the course of the survey proceedings conducted on 16.03.2011. That no purchase bills supporting the purchase of the said unaccounted excess stock of raw material were found during the course of the survey pr....
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....ock of raw materials found during the course of the survey proceedings is fortified from a perusal of the statement of the assessee recorded during the course of the survey proceedings, as under: "Q.11 During the course of verification of stock found at the site at M/s K.K Infrastructure situated at near Raju Garage, Mahim Road, Palghar amounting to Rs. 51,25,042/- It is seen that these stocks has not been shown and not reflected in the tentative trading a/c as on 16.03.2011. Please explain? Ans. Yes, I do agree that the stock found at the above mentioned site for which purchase bill has not received. Hence, we have not accounted in the books of accounts which we hereby declared stock or raw material amounting to Rs. 51,25,042/- being undisclosed income for the F.Y 2010-11 (A.Y. 2011-12). I therefore paying the tax liability on thus undisclosed income in addition to the normal income will arise after completion of the financial year. As such the return of income will be filed along with tax payments before 31.03.2011." 8. We thus in the backdrop of the aforesaid facts are of the considered view that once the assessee had came forth with a disclosure of additional income in r....