TaxTMI 
TaxTMI 
2022 (2) TMI 374
X X X X Extracts X X X X
X X X X Extracts X X X X
....1961(In short the 'Act') dated 30.12.2019 framed by ACIT(Central) Ujjain. 2. Brief facts of the case as culled out from the records are that the assessee is a Private Limited Company. The assessee company is engaged in the business of Manufacturing and trading of plastic goods and corrugated boxes, accessories and job work. Search and seizure operation u/s 132 of the Act was carried out at the business and residential premises of the assessee and its concerns on 27.07.2017. Notice u/s 153A were issued on 30.11.2018. In reply assessee filed return of income on 28.03.2019 for A.Y.2018- 19 declaring total income of Rs. 1,79,35,360/-.After making various additions Ld. AO assessed the income at Rs. 2,00,85,130/- 3. Aggrieved assessee prefe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een passed 143(3) of the IT Act, 1961 2 Date of passing the Assessment Order 30-12-2019 3 Income assessed under section 143(3) Rs. 2,00,85,130/- 4 Total Additions made by AO and reason thereof Total Additions of Rs. 21,49,770/- (i) Rs. 12,06,536/- on account of interest expenses (ii) Rs. 9,43,234/- on account of alleged undisclosed business profit in respect of shortage of inventories. [Para (13.7) on page no. 62 & 63] 5 Relief granted by the ld. CIT (Appeals) Total Relief of Rs. 17,21,434/- (i) Rs. 12,06,536/- on account of interest expenses (ii) Rs. 5,14,898/- on account of alleged undisclosed business profit in respect of shortage of inventories. 6 Addition confirmed by the ld. CIT....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Appellant in its return of income - - 1,30,02,583 1,30,02,583 9 Addition made/sustained - - 9,43,234 4,28,336 2. Justification for inventories as per books taken at Rs. 19,62,74,025/- in the Computation of Total Income instead of Rs. 19,85,00,000/- adopted by the Search Party: 2.1 Stock as per the books of account as on the date of search i.e. on 27-07-2017 was taken by rounding off to a higher sum of Rs. 19,85,00,000/-. The actual value of stock as on 27-07-2017 was at Rs. 19,62,74,025/- [kindly refer PB Page No. 261]. The comparison of actual stock value and round-off stock figures is given in a tabular form as under: S. No. Particulars Quantity Rate Value (Rs.) Round-off....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y by Shri Rajendra Maru while giving his statement u/s. 133A before the Search Party in the case of SBPPL [PB Page No. 259]. 3.3 Reduction of stock on account of Sales made on 26-07-2017 for Rs. 14,23,489/- immediately one day before the date of search which was pending for recording was not considered by the Search Party [PB Page No. 234 to 256]. 3.4 Remaining difference of Rs. 8,62,245/- is owing to incorrect valuation of inventories adopted by the search party. Such fact was duly brought to the notice of the ld. DDIT (Inv.)-II, Indore, post search, by the head of the Group namely Shri Anand Bangur through his letter dated 19-08-2017 [kindly refer PB Page No. 222 to 226]. 3.5 Reconciliation of the recomputed phy....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ge No. 242 to 250]. 2. The appellant also raised a specific ground No. 5 before the ld. CIT(A) in its appeal and made detailed submission [kindly refer PB Page No. 46 to 56]. 3. The ld. CIT(A), at para (4.2) on page no. 156 & 157 of his Order, rejected the claim of the appellant. 4. The claim of the appellant is duly allowable under the provisions of s.37(1) as held by various Courts of Law. 5. Reliance is placed on the judicial pronouncements: i) Sesa Goa Ltd. vs. JCIT (2020) 107 CCH 376 (MumHC) [PB Page No. 262 to 268] ii) Agrawal Coal Corporation Pvt. Ltd. vs. ACIT (2020) 39 ITJ 227 (ITAT Indore) [PB Page No. 269 to 273] At last, it is prayed that the appeal of the assessee m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ch were not accounted by the search team. Accordingly, Ld. CIT(A) computed the gross profit addition at Rs. 4,28,336/-. Ld. counsel for the assessee has filed summary of addition made/sustained which is reproduced in the preceding paras under the submission given to the Ld. counsel for the assessee. 10. From perusal of the same as well as other details filed before us we find that the figure of inventories as per regular books of account taken by both lower authorities is Rs. 19,85,00,000/- which is an approximate figure and the actual figure of the inventories as per the books is Rs. 19,62,74,025/- which is duly supported by the details of quantity rate and value given in the submissions. We find that if this actual figure of inventorie....