TaxTMI 
TaxTMI 
2022 (8) TMI 221
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....ading in gold and silver ornaments. The return of income for the assessment year 2013-14 was filed on 30.08.2013 declaring total income of Rs.1,37,06,928/-. The same was revised on 26.02.2014 at total income of Rs.1,73,50,820/-. Subsequently, the survey operations were conducted in the business premises of the respondent-assessee firm on 07.10.2013. During the course of survey operations, the Assessing Officer found some discrepancies in stock as per the books of accounts and stock as per register maintained through a software application i.e. "ACME Software". During the course of survey proceedings, the Assessing Officer had estimated the such difference of stock as on 31.03.2013 at Rs.4,11,88,184/-. The details of which are as under :- ....
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.... firm, hence not reflected in the Profit & Loss Account, whereas in the software maintained in the computer i.e. ACEM Software, the stock of the customers lying with the respondent-assessee firm i.e. being gold received from customers under the gold deposits scheme or for making ornaments is shown as part of the stock of the assessee firm. It is also mentioned that the stock received from customers is kept under separate box. The respondent-assessee also furnished the statement of reconciliation of stock as on 31.03.2013 vide 08.11.2013. Accordingly, on reconciliation of difference, the excess stock was found to the extent of Rs.36,43,892/- and the same was offered as additional income by revising the return of income. The respondent-assess....
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....he computer software i.e. ACME Software and the stock shown in the Profit & Loss Account, inasmuch as, the respondent-assessee firm was found in possession of excess stock which were not recorded in the books of accounts of the respondent-assessee firm. It is further submitted that during the course of assessment proceedings, the respondent-assessee firm could not explain the discrepancies with evidence and the fact that the respondent-assessee firm itself had offered additional income of Rs.36,43,892/- by filing the revised return of income would establish the fact that the explanation offered by the respondent-assessee firm is not believable. The explanation offered by the respondent-assessee firm is an afterthought and self-contradictory....
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....ider the melting loss of gold at 2026 gms. Finally, he submits that the order of the ld. CIT(A) is based on the proper appreciation of material on record and thus pleaded that no interference with the order of the ld. CIT(A) is called for. 8. We heard the rival submissions and perused the material on record. The issue in the present appeal relates to the addition on account of alleged discrepancies between the stock as per the Profit & Loss Account as on 31.03.2013 and the stock as per register maintained under computer software, namely, ACME Software. It is an admitted fact that there is a difference of the stock as per Profit & Loss Account and stock as per statement generated under ACME Software. Such difference was quantified Rs.4,11....
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....cted. Thus, it appears that the respondent-assessee firm had discharged primary onus lying upon it by explaining the difference between the stock as per Profit & Loss Account and stock as per stock register maintained through computer software 'ACME Software'. On receipt of the explanation, the Assessing Officer had not done anything to verify the veracity of the explanation of the respondent-assessee firm. He simply proceeded with by making addition by observing that the explanation of the respondent-assessee firm cannot be believed for the reason that stock received from the customers in respect of the gold, diamond, silver jewelleries either under gold deposits scheme or gold received for making ornaments were not accounted in the books ....