TaxTMI 
TaxTMI 
2018 (8) TMI 1200
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....nership firm engaged in the business of retail trading in textiles and garments. For the AY 2013-14, the assessee filed a return of income on 29.9.2013 declaring a total income of Rs. 9,11,310. 3. There was a survey carried out u/s. 133A of the Income-Tax Act, 1961 ["the Act"] in the business premises of the assessee on 12.02.2013. According to the revenue, at the time of survey statement of Shri A.D. Shivaprakash, M.D. of the assessee was recorded and in his statement, he had agreed to declare income of Rs. 40 lakhs in the hands of the firm for AY 2013-14. In the return of income filed by the assessee for AY 2013-14, there was no declaration of income of Rs. 40 lakhs. The AO called upon the assessee to explain as to why the income declare....
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.... Ans: Some of the expenditures have not been debited and there are certain errors in closing stock entered in tally package the net profit for the period from April till the date of survey is around 40 lakhs. This will be offered as the income for the current financial year." 4. The AO, however, rejected the plea of assessee and made an addition of Rs. 40 lakhs for the following reasons:- " The contention put forth by the AR was considered. Considering the facts and circumstances of the case, it is apparently clear that the contention of the AR is only an afterthought and hence, the same is rejected for the reason that the managing partner himself had admitted Rs. 40 lakhs during the course of survey proceedings. In this regard, the ....
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....n closing stock entered in tally package the net profit for the period from April till the date of survey is around 40 lakhs. This will be offered as the income for the current financial year." It is also seen from the statement dated 28/02/2013, Sri A D Shivaprakash himself had agreed to declared Rs. 1.40 crores as addl. Income which is inclusive of Rs. 40 lakhs. In view of the above, it is crystal clear that there is a failure on the part of the assessee to declare the income of Rs. 40 lakhs, as admitted at the time of survey in the return of income filed. In the circumstances, the sum of Rs. 40 Lakhs is brought to tax." 5. On appeal by the assessee, the CIT(Appeals) confirmed the order of AO. Hence this appeal by the assessee before....