2021 (10) TMI 1465

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...."Act") for the A.Y. 2007-08. 2. The Assessee has preferred the revised grounds of appeal which are stated as under:- "1. That the ld.CIT(A) has erred in sustaining the addition of Rs. 2,01,350/- on the count of excess stock found on survey u/s 133A (i.e. on 21-9-06) which was only on the basis of statement recorded on oath, when the assessee has duly explained the alleged difference and thus, the action of the ld.CIT(A) is not sustainable as per law, as held by the jurisdictional HC of Chhattisgarh in Vijay Kumar Kesar (2010) and in P. Balasubramanian (2013) (Mad HC). 2. That the ld.CIT(A) has erred in sustaining the addition of Rs. 1,80,000 on the count of excess cash found on survey u/s 133A which was only on the basi....

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....rendered by the Assessee during the course of survey as per the statement recorded on oath. Thereafter, books of account have been reconciled and additional income of Rs. 2,21,940/- which includes Rs. 1,95,630/- on account of excess stock and Rs. 26,310/- on account of excess cash was offered by the Assessee for taxation in its return of income filed on dated 31/10/2007, but the AO made the addition of Rs. 2,01,350/- on account of excess stock found and Rs. 1,80,000/- on account of excess cash found. 3.2 It is the claim of the Assessee that the Assessee's books of account have not been rejected by the AO, however, made the aforesaid additions only on the basis of statement recorded on oath without any corroboration. The Assessee further ....

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.... the Hon'ble Supreme Court has held that "an admission is an extremely important piece of evidence but it cannot be said that it is conclusive and it is open to the person who made the admission to show that it is incorrect and that the Assessee should be given a proper opportunity to show that the books of account do not correctly disclose the correct state of affairs". On the aforesaid analyzations, we deem it appropriate to delete the additions under consideration in ground Nos. 1 & 2. Consequently, grounds Nos. 1 & 2 are allowed. 4. By way of ground No. 3, the Assessee has challenged the sustaining the addition of Rs. 50,000/- on account of low gross profit by comparing the 'post-survey' milling expenses to 'pre-survey' m....