2024 (11) TMI 432

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....by the Ld. CIT(A) as made by the AO on the basis of specific findings during the survey operation on the assessee's premises. 3. Facts in brief are that the assessee filed return of income u/s 139 (1) of the Act dated 16.10.2016 declaring total income of Rs. 1,56,93,250/- under the normal provisions of the Act and Rs. 1,46,23,127/- as book profit u/s 115JB of the Act. Thereafter a survey operation u/s 133A was conducted on the business premises of the assessee on 31.08.2015 and 01.09.2015. Accordingly the case was selected for scrutiny proceedings u/s 143(3) of the Act. Thereafter a statutory notices were duly issued and served on the assessee. During the course of survey proceedings the assessee furnished provisional profit and loss accou....

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....n and thus confirming the order passed by the Hon'ble Madras High Court in the case of CIT vs. S Kader Khan Son [TC(A) No. 867 of 2007] dated 04.07.2007. The Ld. CIT(A) also relied on a number of decisions as discussed in the appellate order. Finally the Ld. CIT(A) gave a finding that the addition of Rs. 2,39,89,250/- was made on the basis of presumption and surmises and also tax neutral because enhancing of closing stock in one financial year would also have the corresponding effect in the opening stock which would result in decrease in profit by the same amount. Accordingly the Ld. CIT(A) directed the AO to delete the addition. 5. After hearing the rival contentions and perusing the material on record, we find that the survey was conduct....