TaxTMI 
TaxTMI 
2022 (2) TMI 374
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....ramed 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 preferred an appeal before the Ld. CIT(A) and partly....
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....rder 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(A) [subject matter before the Hon'ble Bench] (i) Rs. 4,28,336/- on account of alleged undisclosed busin....
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.... 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 (Rs. In Lacs) 1 Finished Goods i) Box 327712 45.63 1,49,53,004 150.00 ii) Corrugated Sheets 135395 51.26 69,39,952 70.00 Sub-total (1) 4,63,107 2,18....
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....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 physical inventories of Rs. 10,25,27,932/- with that adopted by the search party at Rs. 8,70,66,973/-: S. No. Particulars Amount Remarks 1 Craft Paper Reels (Grade-A) 2,96,32,948 As per Inventory Sheet at PB Page No. 220 2 Craft Paper Reels (Grade-B) 1,76,50,074 PB Page No. 219 3 Craft Paper Reels (Grade-C) 1,34,21,894 PB Page No. 218 4 Finished....
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....) 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 may kindly be allowed fully and oblige. 6. Per contra ld. Departmental Representative (DR) supported the order of Ld. CIT(A). 7. We have heard rival contentions and perused the records placed before us and carefully gone through the submissions filed by the assessee. Ground no.1 of the assessee's appeal challenges the finding of Ld. CIT(A) partly confirming the addition for alleged undisclosed business profit at Rs. 4,28,336/- as against the addition made by the ld.AO at Rs. 9,43,234/-. 8. Brief facts ....
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....ate 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 inventories as per regular books of account is applied in the computation sheet mentioned in the impugned order as well as in the finding of Ld. AO, the resultant gross profit @ 13.87% will need to be worked out on the figure of Rs. 9,37,46,093/- and the same will be Rs. 1,30,02,583/- which is the same figure that the assessee has disclosed in the return of income. In other words there will remain no difference to make addition for low gross profit as all the necessary reconciliation has been proved to our satisfaction by t....