TaxTMI 
TaxTMI 
2025 (5) TMI 498
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..../s. 143(3) of the Act. 2. Brief facts of the case are that the assessee is an individual carrying on the business of manufacture of Furniture under the sole proprietorship concern M/s. J.M. Sales. Survey action u/s. 133A of the Act was conducted on 06.02.2019 during which shortage of stock to the tune of Rs. 79,96,450/- was found and the same was accepted by the assessee as unrecorded sales. Subsequently, notice u/s. 143(2) of the Act was issued and served upon the assessee for carrying out the scrutiny proceedings followed by validly service of notice u/s. 142(1) of the Act. During the course of assessment proceedings, ld. AO observed that the assessee has himself admitted and offered the additional income declared under the head 'Incom....
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.... I am also satisfied that section 271AAC is attractable in the present case. Hence, penalty u/s. 271AAC is initiated on this ground. 6. Subject to the above, the total income of the assessee is recomputed as below: Income from business after depreciation, remuneration and interest Rs. 1,00,56,640/- Less : Survey declaration Rs. 79,96,450/- Total Rs. 20,60,190/- Add : Deemed Income u/s. 69A w.r.t.115BBE Rs. 79,96,450/- Total income Rs. 1,00,56,640/- Total Assessed Income R/o. to the nearest ten Rs. 1,00,56,640/- 3. Subsequently, the assessee preferred appeal before the ld.CIT(A) challenging the impugned addition of Rs. 79,96,450/- and also challenging the action of the AO invoking section ....
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....t since said amount was already forming part of closing stock. Thus, income so declared by Appellant and as upheld by Ld. CIT(A) be kindly reduced to the Gross Profit margin on said amount. Accordingly, Appellant be granted just and proper relief in this respect. 2. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('The Act') it be held that Ld. Assessing Officer and Ld. CIT(A) both erred in not guiding the Appellant to correctly compute its income, in as much as taxing the entire amount of Rs. 79,96,450/- instead of the profit component in said sales amount. Accordingly, Appellant be granted just and proper relief in this regard. 3. On the facts and....
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....IT Vs. Shelly Products [2003] 129 taxman 271 (SC) 7. On the other hand, ld. Departmental Representative vehemently argued supporting the orders of the lower authorities. 8. We have heard the rival submissions and perused the record placed before us. Assessee is aggrieved with the addition of undisclosed business income of Rs. 79,96,450/- which was calculated on the basis of shortage of stock found during the course of survey carried out on the assessee's premises on 06.02.2019. We notice that the shortage of stock has been calculated on the basis of closing stock calculated in the estimated trading account and the same has been reduced from the physical stock found during the course of survey. We notice that the physical stock found i....
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....lication of unrecorded cash sales in the items appearing on the asset side. 9. Admittedly, the claim of the assessee that only the profit element on the unrecorded cash sales should been taxed is an afterthought because during the course of survey proceedings as well as in the return of income filed the assessee has admitted the unrecorded sales as its additional income. However, taking note of the fact that during the course of survey the assessee has stated that the cash received from unrecorded sales has been partly utilised for giving advance to the farmers for purchase of raw material and partly for expansion of the existing showroom, we find that details of advance given to the farmers for purchase of raw material and the actual am....