AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 628
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....No. 1 of the assessee is general in nature which does not require any adjudication. Hence, the same is dismissed. 3.1. Apropos Ground No. 2 of the assessee, the facts as emerges from the order of the ld CIT(A) are as under:- ''4.2 I have given a careful consideration to the facts on record and appellant's submissions and I find that the during the course of survey at the business premises of the company on 21.12.1999 double set of cash-book including duplicate cash book and other incriminating paper were found subsequently the such books of account and papers were impounded u/s 131(3) of the Act on 22.12.1999 later on the signed photocopies of these documents were retained for examination. During the course of hearing the assessee was asked to explain the entries and details recorded in the copies during the survey. During the course of assessment proceedings worked out the details of thans processed by the company as per gate passes found during the survey and as per such working based on gate passes the total thans processed during the year up-to 20.12.99 comes at 109434 but according to bill books maintained by the assessee for period 01.04.99 to 20.12.99 total th....
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....nd for this purpose it had set up hot air stenter and Decca machine. During the year, a survey u/s 133 A of the IT Act, 1961 on 21.12.1999 and found duplicate set of books in which the job work activities out- side the regular books of accounts were found reflected. Along with the regular cash book, a common cash book (Exh. 10) was also found. The copies of the gate passes issued were also found in which the entire job work done by the assessee was duly reflected. According to the working given by the assessee, the details of thans processed by the company as per gate passes found during the survey and as per working based on gate passes (annexure 'A') the total thans processed during the year up to 20-12-1999 comes at 109434 but accordingly to bill books maintained by the assessee for the period 1-4-1999 to 20-12-1999. (Ex 100 and 110) total thans processed shown at 61209 only. Thus according to the assessing officer, the assessee company has not recorded the process receipts of 48255(109434-61209) thans in the regular books of accounts. The process receipts of these thans according to the AO were obviously undisclosed income of the assessee. The AO did not point out any d....
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....ot be increased to the desired level due to the competition and therefore the GP stood at low level in the relevant asst year as compared to the preceding asst year. It was claimed by the appellant company that the position remained the same in the relevant asst year. The comparative analysis of various other expenses were submitted to the AO and no discrepancy was found therein. It was submitted that the above case was duly distinguished during the asst proceedings itself that in that case only stenter machine was installed whereas in the assessee's case Decca Machine is also installed and the process is therefore different. Further, the AO in the second alternative method also calculated the profit on the basis of the transaction shown in the regular as well as in common cash book. The AO determined the total receipts out of the Exh. 8 & 10 for Rs 126,63,692/- and reduced it by the total expenditure determined by him for Rs. 3536371/- and also by the bank receipts relating to all the sister concern of the assessee company for Rs. 5362809/- duly verified from the regular books and estimated that there was a net profit of Rs. 3764512/- out of the Exh. 8 & 10. This net profit wa....
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....sented the withdrawals by the company and therefore is not liable to be deducted as claimed by the assessee. The AO while doing so did not bring on record any material showing the disposal of the withdrawal other than as claimed by the assessee and therefore the fact that the money withdrawn from the common cash book went into the bank account of the assessee as shown in the regular cash book remained uncontroverted and therefore the decision of the AO for not allowing the set off of double job receipts is contrary to the facts available on record found at the time of survey u/s 133 A on 21.12.1999. The assessee then determined the expenses as claimed in the common cash book (Exh 10) for Rs.3581132.50 and on this basis determined the net income out of the Exh.10. At the time of assessment proceedings, the expenses were determined by the AO for Rs. 3536371/- out of the common cash book which is slightly varying. But the fact that the income was determined without giving set off of double job receipts as stated above made the whole order illegal and against the principle of arriving at a the real income. The said sum of Rs.207735.00 is represented by investment in cash for Rs.2811/- ....
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....s.30,91,677/- being (trading addition) net profit determined as per duplicate cash book during the course of survey proceedings u/s 133A of the Act. The AO while making the assessment in the case of the assessee in nut shell applied the G.P. Rate of 25% and worked out the addition of Rs.30,79,671/- to the total income of the assessee. The relevant para as to the addition made by the AO is reproduced as under:- ''5. .... As proved from impounded books/documents the assessee has concealed the true income, hence the declared results are not correct. The declared G.P. by the assessee is very low in such line of work. Other firm M/s. Surveyshwar Process House, Balotra had shown g.p. of 26.31% for the similar work during the year. The assessee himself has shown g.p. of 29.25% in the year 1998-99. In the A.Y 1999-2000, the G.P. was taken at 25%. Considering the past history of the case and comparative G.P. of similar work, it would be reasonable to adopt the G.P. for the current year equal to last year at 25%. Accordingly, total income of the assessee company is worked out by the AO at page 3 of the assessment order and thus made addition of Rs.30,79,671/- to the total income of....
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....000/- as shown as receipt in Exh- No. 8 is marked as M/s. Delhi on different dates and no repayment is shown to such delhiwala. Therefore these receipts of Rs. 6,51,000/- were treated as trading receipts. Accordingly, only the balance amount of Rs. 9,04,315/-(15,55,315- 6,51,000) included in the net profit of Rs. 39,95,992/- was reduced to arrive at the net profit of the appellant. However, the balance entries of Rs. 9,04,315/- appear to be deposits and reflected the cash creditors. As the peak amount to these deposits as worked out at Rs. 4.23,780/- by the appellant, the same was treated as undisclosed income of the appellant on account of these transactions. The assessee had already shown Rs. 2,07.434/+ in the return against the above peak calculation. The difference of Rs. 2.16.046 was added to the total income of the assessee. During the course of appellate proceeding the AR of the appellant filed written submissions regarding his claim which was duly considered by the undersigned but not found tenable. Moot question still remained that the appellant had failed to prove the cash credits, as brought out by the AO in his assessment order. Needless to reiterate that during the a....