2025 (7) TMI 1366

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....the assessee is a Hindu Undivided Family engaged in the hospitality business through Ambrai Restaurant. A survey under section 133A of the Act was conducted on 21.02.2019. During the course of survey, the assessee was required to furnish purchase bills and details of expenses relating to the operation of the restaurant from Financial Year 2011-12 to 2017-18. In compliance, the assessee submitted details on 11.03.2019, wherein it was shown that the ratio of food cost to sales ranged between 44% to 59% across the years. 2.1 It was noted by the authorities that while several purchases were backed by third-party bills, certain items, especially perishable goods such as fruits and vegetables, were purchased from local vendors who did not issu....

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....AR pointed out that the purchases were duly recorded in the books of account, supported by internal vouchers where third-party bills were not available, and the expenditure was incurred in the ordinary course of business. It was further submitted that there was no rejection of books of account, nor any independent evidence or material unearthed during the survey to indicate suppression of income. The surrender was made to buy peace and avoid estimation and disputes. 3.2 The Ld. AR further contended that the penalty order fails to specify whether the penalty is being levied for "concealment of income" or "furnishing inaccurate particulars." The twin conditions prescribed under section 271(1)(c) are not satisfied in the present case. In su....

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....dates. However, the filing of the revised returns of income under section 148 was triggered by certain discrepancies noted during survey proceedings conducted on 21.02.2019, particularly in relation to unverifiable food-related expenses. It was given these findings and in order to cover any possible disallowance on an estimated basis that the assessee offered additional income in the revised returns filed on 27.04.2019. The details of the original returns and the revised returns of income, along with the additional income declared and the penalty levied under section 271(1)(c), are summarised as under: Particulars 2012-13 2013-14 2014-15 2015-16 2016-17 Original Return filed on 30.09.12 29.09.13 28.11.14 30.....