TaxTMI 
TaxTMI 
2016 (4) TMI 1446
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....s and in the circumstances of the case and in law, the learned CIT(A) erred in giving a finding that there is no evidence of the appellant providing the necessary facility of weighment by a standardized scale and did not keep the facility of scale at business premises without seeing the audit report. 4. That on the facts and in the circumstances of the case and in law, the learned CIT(A) has given the less relief at Rs. 1,00000/-out of Rs. 15,000/- disallowed by the AO out of various expenses." 2. Apropos Ground Nos. 1 to 3, the facts are that the assessce, during the year, was running a cotton factory. A survey was conducted at the premises of the, assessee. Excess stock of Narma was found. The AO made addition for an amount of Rs. 6,85,270/- on account of this excess stock of Narma. The excess stock of Narma was to the extent of 155.39 Qtls. The survey party drew inventory of the said excess stock, on the basis of weighment of the Narma. The grievance of the assessce is that such weighment was not done in accordance with the provisions of the Standards of Weights and Measures Act, 1976, by any standardized scale using standard weights and measures, but by adhoc weighi....
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....itely a higher estimate given the fact that the appellant had returned an income of only Rs. Two Lacs and odd. The Assessing Officer is, therefore, directed to restrict the addition on this ground to Rs. 50,000/-. It is ordered accordingly." 4. From the above, it is seen that the reason for the ld. CIT(A) to have confirmed the addition made is that it was the assessee who, as per the provisions of section 133A of the Income-tax Act, 1961, was enjoined and mandated to afford to the survey team, the necessary facility to check the stock found in the surveyed premises. According to the Id. CIT(A), however, there is no evidence that the assessee provided to the survey team the necessary facility of weighment by a standardized scale. The ld. CIT(A) further goes on to say that it is not a case where the assessee provided to the survey team the necessary facility of weighment of the Narma found in the survey, by a standardized scale, but it was the survey team, which refused to take inventory of the stock by the standardized scale so provided. The assessee's objection has been dismissed by concluding that the said requisite necessary facility of weighment by a standardized scale wa....
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....und therein, and (iii) to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act." (emphasis supplied) 8. A bare perusal of the portion of the above section 133A(1) succeeding sub-section (c) and preceding clause (i) shows that on entering the premises being surveyed, it is for the Income Tax Authority so entering to require the person attending to, or helping in the carrying on of any business or profession at the premises to be surveyed, to afford to him the necessary facility to check or verify the stock which may be found at the place surveyed, as is the requirement of section 133(1)(ii) of the Act. The operative word here is 'require'. Thus, the mandate of the section is that it is the surveying Authority who is to 'require' the person attending to or helping in the business carried on at the premises under survey to be afforded the necessary facility to check or verify the stock found during the survey. It follows that it is only on such requirement having been expressed by the surveying Authority, that the said authority shall essentially be afforded such facility for c....
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....y shall have all the powers under section 131(1) for enforcing compliance with the requirement made. In other words, if a surveying Authority requires a person to afford facility to check or verify any stock found and such person refuses or evades to do so, the Authority shall have the powers vested in a court under the Code of Civil Procedure, 1908, when trying a suit, for enforcing compliance with the requirement made. The 'required' in the opening portion of the section is explained by the concluding words ' requirement made'. 12. Thus, it becomes amply clear that it is first for the surveying Authority to require the person attending to, or helping in the carrying on of any business or profession at the surveyed premises to afford the necessary facility to check or verify the stock found during the survey. Only then can the person afford such facility to the Authority. 13. Section 133A(6), thus, vests the surveying Authority with the powers under section 131 for enforcing compliance with the requirement arisen during the survey. This is also the view of the CBDT under Circular No.20D, dated 07.07.1964, qua inspection of books of account and other documents....