TaxTMI 
TaxTMI 
2015 (9) TMI 1680
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.... facts and circumstances of both the years are similar except for the assessment years and amounts involved and they have common submissions to make for both the appeals and therefore both the appeals can be heard together. We therefore proceed to dispose of both the appeals together for the sake of convenience and proceed with the facts in ITA No. 91/Ahd/2011 for A.Y. 2006-07. 3. The relevant facts as culled out from the material on record are as under. 4. Assessee is a partnership firm stated to be engaged in the business of construction of roads. In this case survey u/s. 133A of the Act was carried out on 06.10.2006 at the office premises of the Assessee and other concerns. During the course of survey proceedings, statement on oath....
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....to addition made on the basis of income admitted during the course of survey and the enhancement made by ld. CIT(A). 6. During the course of assessment proceedings, on verification of the Profit and Loss account, A.O noticed that though at the time of survey on 06.10.2006, Assessee had admitted unaccounted income of Rs. 20 lacs but Assessee had only offered regular income and the income admitted at the time of survey was not considered by the Assessee. The Assessee was therefore asked to show cause the reasons for the non inclusion of the amount admitted at the time of survey. The various submissions of the Assessee were not found acceptable to the A.O. A.O noted that though Assessee had disclosed unaccounted income over and above his re....
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....per to look into the above reproduced submission of the appellant making various allegations in respect of the survey action. The appellant has made allegations against the survey party stating that he was tempted to made disclosure "forcefully by the Survey Officer only to achieve the target of tax collection to get credit of higher authorities". It is further contended that he had made disclosure to buy mental peace. After looking into the facts of the case, I find the allegations made by the appellant not only completely baseless but also unfortunately malicious. It has not been informed as to what was the temptation given by the survey officers. Similarly, it is also not informed as to why, if he was forced to give this disclosure at th....
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....t receipts because actual expenditure is made by the contract or and only he is privy to the real expenditure. Thus by inflating actual expenditure income can be suppressed which is the case here. And therefore it has to be held that what was surrendered during the course of survey was net taxable income over and above the income shown in the books and to that extent the contention in this regard has no merit. The Assessing Officer has rightly pointed out that what was surrendered at the time of survey was taxable income and the indirect retraction made now is not acceptable in absence of any evidence is support of such retraction. This ground is therefore rejected. 2.4. During the course of appellate proceedings it was noticed tha....
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....xpenses were debited without proper document and since they were unverifiable, additional income with respect to those expenses amounting to Rs. 20 lacs was considered as income of the Assessee and the same was offered to tax. He pointed to the English Translation of the statement recorded placed at page 22 of the paper book. He further submitted that the aforesaid amount of Rs. 20 lacs was declared by the Assessee in the Profit and Loss account for the year ended 31st March, 2006 and for which he pointed at page 29 of the paper book and he therefore submitted that Rs. 20 lacs has already been considered by Assessee while computing the income. He further submitted that once A.O has rejected the books results and has made estimation on the b....
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....fit as commonly understood means the profit which has been arrived at by netting off income over the expenditure meaning thereby that whatever expenses which were due and were deductible have been deducted from the income of the Assessee before deriving the final figure of profit. We are of the view that in a situation when once addition has been made on the basis of estimation of net profit, further addition is not called for and for this conclusion we derive support by the decision of Hon'ble Punjab & Haryana High Court in the case of CIT vs. Aggarwal Engg. Co. (supra) wherein the Hon'ble High Court after considering the decision of Allahabad High Court in the case of CIT vs. Banswarilal Banshidhar (supra) held that no further addition wa....