TaxTMI 
TaxTMI 
2024 (8) TMI 682
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....umstances of the case, learned CIT (A) has erred, both on facts and in law, in rejecting the contention of assessee that the assessment order passed is bad in the eyes of law as the same was passed undated & not digitally signed. 4. (1) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the assessee that the proceedings initiated under section 153A against the appellant and the consequent reassessment framed under section 153A r.w.s. 143(3) are in violation of mandatory provisions of Section 153D of the Act and as such the same is bad in eyes of law. (ii) That the CIT(A) has erred in ignoring the contention of the assessee that the purported approval u/s 153D of the Act is illegal, bad in law and also without any application of mind. 5. (i) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the addition of Rs. 4,82,58,537/- made on account of excess stock found during search. (ii) That the addition made by Ld. AO and sustained by Ld. CIT(A) by invoking the provision of Section 69C is legally untenable in the absence of any evidence t....
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.... Manager of the factory in his statement recorded u/s 132(4) of the Act had failed to explain the discrepancy and duly acknowledged that 'the physical stock taken was appropriate and was taken with the help of my team. Besides, Sh. Akshat Jain, Director of the assessee company also could not explain the difference in stock as found physically in search operation and in the books of accounts of M/s Mahavir Transmission Ltd. In this regard, It is pertinent to mention that assessee has not rebutted the presumption given u/s 132(4A) of the Income Tax Act, 1961 which read as under: "(44) Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search, it may be presumed- (i) that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person, (ii) that the contents of such books of account and other documents are true, and (iii) that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or ....
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....n was recorded u/s 131(1A) of Income Tax Act, 1981 and he was specifically asked to explain the difference in stock as found physically during search operation and in the books of accounts of the appellant, to which he was not able to give any Justifiable and satisfactory reply. The appellant during the appellate proceedings has taken pleas that there was no complete entry of goods in the books of the assessee, that classification of the goods was not done properly by the search team, the valuation was not proper and also that the general manager Shri Subhash Singh was not the qualified person to undertake the stock taking exercise. The above submissions of the appellant are not convincing. If the General Manager Shri Subhash Singh was not qualified for the stock taking exercise, the fact should have been clearly communicated to the search team. Since he was the general Manager, he should have had deputed the qualified official to help the search to inventory taking and valuation. Also, as General Manager he was well aware of the entry of goods in the books and he should have specified it to search team in his statement u/s 132(4) of the Act. More important is the fact that the sta....
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....2021 and not on 22.02.2021 i.e. the date of the stock summary ledger used by the search team for making comparison and drawing adverse inference. Aluminium as per the physical inventory done on 24.03.2021 by the search team was found out to be 1405,381 Kg. Aluminium as per assessee's books of accounts in coming to be 1443,641 Kg. As per the Revenue, the goods are quantified on the basis of finished goods being product category such as Dog, Panther and Zebra, etc. and raw material being Steel Wire, Steel Core Wire, Aluminium, Low Grade Aluminium scrap, Aluminium wire and HLPC and PVC, etc. The search party took the stock by the description on the cartoons such as Dog, Panther and Zebra whereas the same contents can be a part of stock of Aluminium wire, rod and sheets mentioned in the raw material. Similarly, the production of the material during the two days of search has not been entered in the books but has been valued by the search party. The inventory has been prepared not based on the material but based on the description of the finished product. Further, Shri Subhash Singh in his statement has confirmed the fact that stock was being maintained at the Head Office at C-58, Secto....