2021 (9) TMI 530

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.... erred in not appreciating the application of provisions of section 292C of IT Act to the evidence. 3. The Ld. CIT(A) erred in not appreciating the fact that the unaccounted purchases also attract provision of Sec. 69B as it is an investment in stock in trade. 4. For these and other grounds that may be urged upon, the order of the CIT(A) may be reversed and that assessment order to be restored." 2. The facts of the case are that the assessee is the proprietor of Golden Supari Traders, Azizuddin Road, Bunder, Mangalore. Original return of income was filed by the assessee u/s. 139(1) on 30/09/2013 disclosing a taxable income of Rs. 15,43,790/-. The return was processed u/s. 143 of the Income-tax Act on 15.01.2014. There w....

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....015 at the residential premises stituated at D. No. 35-2-256, Imtiyaz Manzil, Karmbar Bajpe and also business premises of M/s. Golden Supari Traders at 20-1-713, Sabeena Complex, Azizuddin Road, Bunder, Mangalore. Also survey was conducted at business premises on the same day. Consequent to the search, search party found pocket diaries which contained receivables as below:-   Total Receivables (Op Bal)   COLLECTION   SALE Total Receivables FY 2012-13       21490104 FY 2013-14 21490104 86799537 89395185 2595648 FY 2014-15 19472649 108025741 101066069 -6959672 FY 2015-16 7381135 11172342 9801703 539573 Total   205997....

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....u/s. 292C of the Act in this case. There is no dispute that the CIT(A) has not at all held that the seized material found in the form of pocket diaries does not belong to the assessee. He considered the pocket diaries found during the course of search action as belonging to the assessee. He also considered the contents mentioned in the pocket diaries as true. He observed that it reflects the undisclosed turnover of the assessee. However, he has given a finding that the entire turnover mentioned in the pocket diaries in its entirety cannot be considered as undisclosed income of the assessee and turnover includes purchase cost, labour cost, other costs and gross profit and he estimated only the net profit of that turnover @ 5% and directed th....