TaxTMI 
TaxTMI 
2020 (4) TMI 704
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....e in stock found during the course the survey dtd. 134-03-2008." 2. Brief facts of the case are that assessee is engaged in the business of selling on whole sale and retail basis. Therefore, survey action on 04-03- 1982 on the premises of the assessee and accordingly the case was taken under scrutiny and assessment was finalized determining the total income at Rs. 7,85,935/- as against return of income of Rs. 4,45,333/- 3. Aggrieved by the order of the assessing officer, the assessee has preferred appeal before the ld. CIT(A) and in the absence of assessee the appeal was dismissed and ultimately ITAT Ahmedabad Bench had restored the matter back to the file of Ld. CIT(A) for deciding afresh. And ld.CIT(A) after considering the case of ....
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.... being difference in stock found during the course of search dated 14-03-2018. 8. The ld. A.R. appearing on behalf of the assessee reiterated the same arguments as were raised by him before the ld. CIT(A) and the same was reproduced below contained in para 3.2 of the order of ld. CIT(A) which is reproduced as under:- "In the appellate proceedings, the appellant has filed submissions as under: The AO has stated in his assessment order for making addition under section 69 of the I. T. Act: "In light of the above, it is clearly seen that the assessee has admitted Rs. 3,28,300/- as there unaccounted investment in stock and agreed to pay tax on the same. As such, the un-accounted investment in stock to tune....
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....eavily relied upon the statement given by the assessee at the time of survey without considering the assessee's submission that there was no shortage of stock at the time of survey as the survey team did not include certain stock lying in open yard. As regards the statement given by the assessee we would like to refer to the CBDT Circular No.286/2/2003 dated- 10-3-2003 wherein it is stated that while recording statement during the course of search and seizure and survey operations no attempt should be made to obtain confession as to the undisclosed income. Apart from above it has also been noticed that the AO has applied profit rate on shortage of the stock without examining the correct fact whether the assessee has sold raw material ou....
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....en. Further, in profit & loss account following figures is appearing. Debit Side Credit Side Particulars Amount Particulars Amount Opening stock 60,02,144.12 Gross sale 73,74,506.25 Purchase 5,09,321.00 Closing stock 4,63,368.73 Godown expense & License fees 45,725.00 Gross Profit 12..80,684.86 Total 78,37,874.98 Total 78,37,.874.98 Gross profit in % 17.37% In the above figure of purchases, alleged un-accounted purchase/so called stock difference of Rs. 3,28,300/- is already included. Further, corresponding sales are also appearing either in turnover of sales origin closing stock. I am also enclosing h....
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....entory of stock as per books. The appellant has recorded such transactions in its books of account. Books are audited and produced in assessment proceeding. The AO has found such books are in order in the proceedings before him under section 143(3) of the Act and therefore, he avoided rejection of books." 9. On the other hand, ld. D.R. relied upon the order passed by revenue authorities. 10. We have heard the ld. counsels for both the parties and also perused the material placed on record as well as orders passed by revenue authorities. As per facts of the present case, the additions were made by the assessing officer on account of difference in stock found during the course of search in the case of the assessee on 14-03-2008 and i....
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....nnexure-8 which has also mentioned by the assessee in his written submissions as enumerated in para 3.4 of the order of ld. CIT(A). The ld. CIT(A) has also stressed that annexure BF-1 to BF-15 were purchase bills amounting to Rs. 3,28,300/- and all those bills were for cash purchases and the said difference of stock was found only because of the fact that the accountant of the firm had not recorded these cash purchases in the books of accounts till the date of survey. It is undisputed fact that there was a cash in hand of Rs. 14,34,466/- as per books of account found in the course of survey thus even if the above purchases of Rs. 3,28,300/- are taken into consideration, then, also there was positive cash balance remain in the hands of asses....