TaxTMI 
TaxTMI 
2020 (4) TMI 661
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....s. 10,86,165/-: - The Ld. CIT(A) erred in law as well as on the facts of the case in denying the benefit of the availability of the stock, the income of which has already been surrendered in respect to the unaccounted purchases of Rs. 13,00,000/- towards the short stock/suppressed sales found of Rs. 10,86,165/- and this way, wrongly confirmed the double addition made of the same income by the AO which is not permissible in law. The addition so made and confirmed, kindly be deleted in full. 1.2 Alternatively and without prejudice to the above. The Id. CIT(A) also erred in law as well as on the facts of the case in denying the benefit of the availability of the sale proceeds resulting from the suppressed sales of Rs. 10,86,165/- towa....
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.... investments in the unaccounted purchases of Rs. 13,00,000/- and GP on short stock of Rs. 754 with others, pursuant to the survey. 3. By the impugned order, the ld. CIT(A) has accepted the availability of cash of Rs. 1,55,858/- saying that the same generated out of the undisclosed sales, assuming that it was the cash sale effected on the date of survey itself, hence directed to give set - off but rejected the contention of the utilization of the undisclosed sale proceeds (of Rs. 10,86,165/-) towards the alleged unaccounted purchases of Rs. 13,00,000/-. Against which the assessee is in further appeal before the ITAT. 4. I have gone through the orders of the authorities below and found that the A.O. has purportedly converted the case of....
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....were made from Ishwar Lal Teli which were not accounted for and simply by referring to telephonic conversation with Ishwar Lal Teli, it was inferred that no bill was to be received by the assessee and only bilty was to be given by him, which shows that it was out of books transaction. However, I found that Shri Ishwar Teli, has been sending their goods for sales through the assessee on Aadhat only i.e. on commission basis only. This is evident from Q 21 & 25 of statement of Shri Mahesh Goyal (son of partner), which has been reproduced by the AO also in the Assessment Order at page 4-5. Pertinently the AO himself has made a mention of this fact when Mahesh Goyal stated of the sale of the goods of the parties in Aadat. 6. From the record I....
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....r on its own account or even the goods received on account of Aadat sale, has duly been entered in the quantitative stock register and this way, the entire purchases made is fully accounted for. At the worst, it was only the suppressed sale made out of the recorded purchases, but in any case, it was not a case of unexplained investment/unaccounted purchases made as wrongly understood by the authorities below. There is a reference of Stock Register in Q. 8 & 11. I also observe that this declaration of Rs. 13.00 lacs and Rs. 1.55 lacs are not supported/corroborated by any other independent evidence found during the course of survey nor it is a case made by the survey team nor by the A.O. in the impugned assessment order. 8. Furthermore, Q.....