TaxTMI 
TaxTMI 
2020 (2) TMI 1274
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....e main partner. Consequential survey u/s 133A of the Act was conducted on the very same day on M/s. New Pooja Jewellers to verify the source of Rs.60 lakh found in the possession of Mr. Rakesh Gupta. Mr. Rakesh Gupta stated that, the amount of Rs.60 lakh found in Delhi Airport was being carried by him for the purpose of purchase of ornaments for being sold in Kolkata by M/s. New Pooja Jewellers. The assessee furnished a cash flow statement and explained that the source of money was advances received from various customers of the said firm on the auspicious occasion of Ramnavami Nayakhata. On 08.07.2013 the assessee produced before the Directorate of Income Tax (Investigation), Unit IV(7), Kolkata, books of account, cash book, bank book, journal book, general ledger, sales day book, purchase day book, sundry debtors and sundry creditors books, stock registers, production register as well as cash flow statement explaining the cash balance of Rs.60 lakh. 4. The AO passed an order u/s 143(3) of the Act determining the total income of the assessee at Rs.64,24,257/- inter alia making the addition of Rs.60 lakh. While doing so he observed as follows: "In spite of given various....
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....el for the assessee submitted that both the AO as well as the ld. CIT(A) were factually incorrect in stating that the assessee had not submitted any explanation immediately after the seizure of a cash of Rs.60 lakh. He filed a paper book and submitted that a reply and explanation was submitted to the Investigation Wing on 08.07.2013 explaining this cash seizure of Rs.60 lakh and also producing evidences and books of account along with tax invoices, inventory of cash found etc. He submitted that it was also factually incorrect on the part of the AO to state that the cash flow statement were given for the first time during the course of assessment proceedings and drew the attention of the Bench to point no. 2 of the reply given to the Investigation Wing on 08.07.2013. He explained that the cash flow statement was filed before the Investigation Wing immediately after the seizure of cash, explaining the source of cash. He submitted that the assessee has a part-time accountant and soon after the survey the part-time accountant had updated the books of account consisting of cash book, bank book, journal book, general ledger, sales day book, purchase day book, sundry debtors and sundry cr....
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....mediately after the survey and submitted before the Survey Authorities i.e. the Directorate of Income Tax (Investigation), Unit IV(7), Kolkata. These evidences cannot be brushed aside. The assessee has produced before us evidences that it had produced before the Directorate of Income Tax (Investigation), Unit IV(7), Kolkata, its cash book from 01.04.2012 to 31.03.2013 and 01.04.2013 to 08.07.2013, bank book, journal book, general ledger, sales day book, purchase day book, sundry debtors and sundry creditors books, stock registers, production register etc. 13. The explanation given by the assessee to the Survey Team is extracted for ready reference: "I. GENERAL INFORMATION 1. THE ORGANISATIONS DEALS IN MANUFACTURING, WHOLE SALE AND TRADING OF GOLD ORNAMENTS AND BULLIONS UNDER THE NAME AND STYLE MESSRS NEW POOJA JEWELLERS AT BUSINESS PREMISES 24, NALINI SETH ROAD, GROUND FLOOR, BARABAZAR, SONAPATTT KOLKATA 700 007. 2. IT IS A PARTNERSHIP FIRM HAVING TWO PARTNERS SRI RAKESH KUMAR GUPTA AND SRI UMESH KUMAR GUPTA WITH A PROFIT SHARING RATIO OF 50% EACH. 3. PERMANENT ACCOUNT NUMBER (P A N) OF THE FIRM IS AAGFN3979B AND ASSESSED AT I.T.O.WD 43(3) ....
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....ON SALE ON THE DATES NOTED IN EACH TAX INVOICE. A. SALES INVOICES IN ID MARK - NPJ/1 CONSISTING OF TAX INVOICE NO 1 TO 50 DENOTES FOR SALES OF GOLD ORNAMENTS DURING THE PERIOD FROM 01.04.2013 TO 18.05.2013. THESE SALES ARE EFFECTED IN FINANCIAL YEAR 2013-2014 AND DULY RECORDED IN COMPUTARISED CASH BOOK AND BANK BOOK, SALES DAY BOOK, SUNDRY DEBTORS REGISTER AND STOCK BOOKS AND ACCOUNTS. COMPUTERISED CASK BOOK ETC AND OTHER BOOKS FOR FINANCIAL YEAR 2013-2014 ARE AVAILABLE. HONORABLE SIR MAY VERIFY THESE TRANSACTIONS WITH THESE BOOKS AND RECORDS. B. SALES INVOICES IN ID MARK - NPJ/2 CONSISTING OF TAX INVOICE NO 1001 TO 1050 DENOTES FOR SALES OF GOLD ORNAMENTS DURING THE PERIOD FROM 20.08.2012 TO 03.11.2012. THESE SALES ARE EFFECTED IN FINANCIAL YEAR 2012-2013 AND DULY RECORDED IN COM PUT ARIS FID CASH BOOK AND BANK BOOK, SALES DAY BOOK, SUNDRY DEBTORS REGISTER AND STOCK BOOKS AND ACCOUNTS IN THOSE YEAR. COMPUTARISED CASK BOOK AND OTHER BOOKS ETC. AND ACCOUNTS FOR FINANCIAL YEAR 2012-2013 ARE AVAILABLE. HONORABLE SIR MAY VERIFY THESE TRANSACTIONS WITH THESE BOOKS, ACCOUNTS AND RECORDS. C. SALES INVOICES IN ID MARK - NPJ/3 CONSISTING OF TAX I....
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....OF THESE APPROVAL SLIPS RELATES TO THE SAME. FEW OF THEM ARE ESPECTED TO MATERIALISE IN COMING SESSION. H. A BUNCH OF LOOSE SHEET CONTAINING PURCHASE /INVOICES SERIALLY NUMBERRED 1 TO 39 AS REFERRED IN ID MARK NPJ/9 DENOTES PURCHASES OF GOLD AND SILVER BAR DURING THE PERIOD FR0M 01.04.2012 - 31.03.2013 AND 01.04.2013 TO 31.05.2013. SL.NO. L, 2, 3 AND 5 ARE PURCHASES OF GOLD BAR FROM DEALERS ON 30.04.2013, 24.04.2013, 17.05.2013 AND 18.05.2013 RESPECTIVELY WHICH ARE DULY RECORDED IN COMPUTARISED PURCHASE BOOK, SUNDRY CREDITORS LEDGER AND STOCK BOOK. THEIR PAYMENTS ARE MADE BY CHEQUES ONLY WHICH ARE DULY RECORDED IN BANK BOOK OF THE FIRM. THESE TRANSACTIONS ARE RECORDED IN VAT RETURN AND VAT INPUT REGISTER ALSO SUBMITTED TO W.B.VAT TAX AUTHORITIES. HONORABLE .SIR MAY VERIFY THESE TRANSACTIONS WITH THAT RECORDS, IF THINK NECESSARY. ITEM IN SL. NO. 4 REPRESENT BANK STATEMENT FOR THE MONTH OF APRIL, 201.3 OF ICICI BANK. THE FIRM HAS A CURRENT ACCOUNT WITH ICICI BANK LTD, BURABAZAR BRANCH. THE TRANSACTIONS FOR DEPOSITS AND PAYMENTS ARE SELF EXPLANATARY AND DULY RECORDED IN BANK BOOK OF THE FIRM. PURCHASE INVOICES, SERIALLY NUMDERED 5 TO 32 DENOTES PURC....
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....R DOCUMENTS SURPLUS CASH IN HAND OF RS.3,86,084.00 COULD NOT BE TRACED OUT WHICH MAY PLEASE BE TAKEN FOR ADD/BACK AND SYMPATHY TO THE PARTY. WE SHALL BE HIGHLY OBLISED IF THE HONORABLE SIR WILL EXCUSE THIS MINOR IRREGULARITY. SINCE, CASH OF Rs. 60,00,000.00, WHICH WAS FOUND FROM MR. RAKESH KUMAR GUPTA, SENIOR PARTNER OF THE FIRM, AND SEIZED AT NEW DELHI AIR PORT BY THE AIRPORT AUTHORITY, IS BELONGING TO THE BUSINESS PROPERTY WE SHALL REQUEST YOUR HONOUR KINDLY TO RELEASE THE SAME AT YOUR EARLIEST. YOUR PARTY BUSINESS HAS EFFECTED BADLY AND ALMOST ON FAILURE POSITION DUE TO ABOVE SEIZURE WE REQUEST YOUR HONOUR KINDLY TO RELEASE ABOVE SEIZURE AND OBLISE. 3. INVENTORY OF BANK ACCOUNTS FOUND FROM THE BUSINESS PREMISES - REFERRED IN ANNEXURE - 3 OF SURVEY PROCEEDING STATEMENT i. MR. RAKESH KUMAR GUPTA AND MR. UMESH KUMAR GUPTA ARE THE PARTNERS OF THE FIRM. THEY HAVE PERSONAL SAVING BANK ACCOUNTS WITH INDIAN OVERSEAS BANK, BARABAZAR BRANCH, KOLKATA. BOTH PARNNERS ARE INCOME TAX ASSESSEE HAVING PAN AINPG5444P AND AINPG5445N, ITO, WD 43(3) AND 43(4) RESPECTIVELY. THEY HAVE SAVING BANK ACCOUNT NO. 8186 AND 8185 RESPECTIVELY. THESE ARE ONLY BANK ACCOUNTS O....