2018 (6) TMI 1668

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....ed in passing the order in the manner passed by him and the learned Commissioner of Income Tax (Appeals) has erred in partially confirming the same. The impugned order to the extent confirmed by the CIT(A) being bad in law is required to be quashed. 2.1 In any case and without further prejudice the Assessing Officer had erred in adding an amount of Rs. 1,82,527/- cash difference found during the course of survey as income. 2.2 The authorities below have erred in holding that the shortage of cash which could not be explained on the da of survey to be the appellants income. 2.3 During the course of hearing, the authorized representative had requested for telescoping the shortage of cash to excess stock found which w....

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.... the assessee firm M/s. Khapare Shutters B-29, 1st Gate, Industrial Estate, Gokul Road, Hubballi on 19.12.2013. During the course of survey proceedings, stock verification was carried out at the business premise wherein, the physical stock inventorised was at Rs. 57,63,631/- whereas the value of stock as per books was Rs. 33,52,763/- resulting in an excess stock of Rs. 24,10,868/-. In addition to this, cash balance as per books of account as on the date of survey was found to be Rs. 1,82,527/- whereas, no cash was found on the date of survey. When confronted, the assessee stated that the difference would be reconciled after consulting with other partner. As there was no response from the assessee, Statement of Shri. Ravi Krishnaji Khapare b....