2025 (6) TMI 1769

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....come-tax Act, 1961 (the Act) on 20.10.2019 declaring total income at Rs. 10,35,370/-. Later, a survey was conducted u/s 133A of the Income Tax Act, 1961 on 13.02.2019 on the assessee. Subsequently, the case was selected for compulsory scrutiny for the year of survey i.e., the instant AY 2019-20. Subsequently, notice u/s 143(2) & 142(1) was issued to the assessee with all the relevant questionaries in timely manner. In response to the same, the assessee through his AR submitted requisite details and documents to the AO and the case was heard. Later, the AO passed the assessment order u/s 143(3) of the Act on 27.09.2021 determining a total Income of Rs. 79,45,650/-, and served on the assessee. On perusal of the assessment order, it is observe....

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.... of the assessee was that the books were not updated at the time of survey. According to him all the sales such as Atta, Husk/ Bran, Dust, have been duly recorded in the audited books of accounts and the same is included in the total turnover and duly offered for taxation in the return of income. He placed reliance on the order passed by the ITAT Indore Bench in cases of ACIT, 2(1) Vs. Surajbhan Agrawal in ITA No. 352/Ind/2013 order dated 26.08.2013 and Janta tiles Vs. ACIT vide order dated 06.04.1999 passed by ITAT Pune Bench. 07. Upon hearing the submissions of the counsel of the respective parties, we peruse the order passed by the ld. AO as well as the ld. CIT (A) and find that the ld. AO has held that Dipak Shah being the partner of....

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....which are yet to be recorded in the books of account of the assessee. The assessee both in the assessment proceedings as well as in the appellate proceedings had submitted that the said unaccounted sale was not at all unexplained as the same was recorded into its books of account after the survey operation. 6.2.2. When there is a shortage of stock, it can be inferred that the sale was already done, but not recorded in the books For the unaccounted sale a GP ratio is to be applied for estimating the profit. Reliance may be placed on the judgement of Gujrat High Court in the case of 'PCIT-2 vs. Rameswar Textile Mills Ltd 07/09/2015', 'ACIT vs. comor granito Pvt. Ltd.' In which the Hon'ble High Court and ITAT Rajko....