TaxTMI 
TaxTMI 
2019 (7) TMI 367
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.... given during the course of survey operations. 2.1 The facts relating to the issue are stated in brief. The assessee is carrying on business of dealing in Gold and Silver ornaments under the trade name M/s Kanaka Jewellers. The revenue carried out survey operations u/s 133A of the IT Act, 1961 in the premises of the assessee on 14th & 15th of February, 2013. During the course of survey operations, the assessee surrendered a sum of Rs. 83.33 lakhs as his income in the statement taken at that point of time on account of excess stock, difference in methodology (sic. Valuation) of closing stock & pawn broking. After completion of Survey operations, the assessee filed a letter dated 18-02-2013, wherein it was mentioned that the stock differen....
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....3 ITR 101 [Ker) (iii) CIT Vs. M/s. Hotel Samrat [2010] 323 ITR 353 [Kerala] (iv) CIT Vs. Dhingra Metl Works, [2010] 328 ITR 384 [del]) The ld. CIT(A) rejected the contentions of the assessee and enhanced the addition to R.83.33 lakhs with the following observations; "The aforesaid submission was carefully considered on the admitted facts. The evidence on record shows that the statement given by the appellant u/s.133A (3) of the Act on 14.02.2013 was not a mere statement, but a truthful statement recorded on the basis of supporting evidence gathered during the course of the survey conducted u/s 133A of the Act. The Assessing Officer and his team of personnel of the Income-tax Department obtained due authorizatio....
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....d, obviously for the purpose of suppressing his taxable income and finally suppressed the entire quantum of his undisclosed investment while filing the return of income. Therefore, the judicial decisions cited by the appellant at (i), (ii), (iii) and (iv) in this paragraph do not come to his rescue. The appellant also made a statement in writing during the survey that the information given by him in the statement dated 14.02.2013 / 15.02.26 was true and correct to the best of his knowledge and belief and that he made that statement in a good state of mind without any coercion or undue influence. Therefore, the following judicial decisions are relied upon in support of the proposal for enhancement of the assessed income: * When a st....
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....stment made by the appellant in a statement recorded from him which was based on evidence gathered during the survey u/s 133A of the Act is well settled and therefore, the written submission, dt.15/03/2018 of the appellant challenging the proposal for enhancement of the assessed income of the appellant is rejected after due consideration of the facts on record and the position of law applicable to those facts. 16. Thus, having established that the quantum of undisclosed investment represented by the amount expended by the appellant on making such investment in stock-in-trade exceeded the amount recorded in this regard in the books of account maintained by the appellant and since the appellant offered no satisfactory explanation abo....
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....nce in the quantity, difference in valuation and considering income of the assessee in pawn broking business. It is pertinent to note that though the assessee has disputed the quantum of surrender in his letter dated 18-02-2013, yet he filed another letter dated 26.04.2013, wherein the assessee has agreed to offer a sum of Rs. 50.00 lakhs on account of difference in stock and difference in method of valuation. 7. The chronological event would show that the assessee has agreed to offer a sum of Rs. 83.33 lakhs at the time of survey operations. As submitted by Ld D.R, the said amount is determined on the basis of difference in the quantity, difference in valuation and considering income of the assessee in pawn broking business. Hence, i....
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....imself has filed another letter dated 26.04.2013 subsequently, wherein he has agreed to offer a sum of Rs. 50.00 lakhs towards difference in quantity and difference in valuation. We have noticed that the survey operations took place on 14th and 15th of February, 2018, meaning thereby, the assessee was having sufficient time between the dates of survey and the date of filing letter dated 26.04.2013, wherein the additional income of Rs. 50.00 lakhs was surrendered. 9. We have noticed that the assessee was ignorant of the basis under which the additional income of Rs. 83.33 lakhs was arrived. Hence the assessee has asked for the basis of arriving at the figure of Rs. 83.33 lakhs in his letter dated 18.02.2013 (within three days of survey op....