2025 (8) TMI 1185

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....he case are that the assessee is an Individual and during the year under consideration he derived income from business of manufacturing & trading of bullion, precious stones, diamond and Jewellery in his proprietorship concern M/s Mohan Lal Mahendra Kumar Jewellers and interest income from saving bank account. The assessee filed his return of total income on 30.10.2018 of total income of Rs. 4,66,890/-. A survey operation u/s 133A of the Act was conducted by the Income Tax department on the business premises of assessee on 06.10.2017. During survey, inventory of cash and stock physically found, was prepared. As a result of survey, the stock of Rs. 1,13,941/- and cash Rs. 2,865/- was found excess and the same was surrendered by assessee as h....

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....eferred the present appeal before us. The assessee raised the following grounds of appeal: - "1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in confirming the addition of Rs. 1,13,941/- made by the Ld. AO u/s 69B of the Act on account of alleged excess stock found during the course of survey and charging the tax by applying provisions of section 115BBE. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in confirming the addition of excess stock as income from other source which is completely disregards with the decision of Hon'ble Rajasthan High Court in the case of CIT v/s Bajrang Traders 2017 (11) TMI 388. 3. The appellant prays for leave to Add, to amend, to delete, or mo....

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....ng the course of survey itself, the assessee brought this fact in the knowledge of the survey party and the same is apparent from the answer to Q. No. 12 of statement of assessee recorded during survey. After verifying this fact, the survey party did not raise any further question from the assessee on this issue and the Ld. A.O. also accepted this. Thus, after considering this fact, the difference in stock only comes to Rs. 1,13,941/- (2,40,72,839- 1,86,76,780+55,10,000), which was treated by Ld. A.O. as excess and added in total income of the assessee. 2. Regarding the reasons of minor difference of Rs. 1,13,941/- the assessee explained that this excess is on account of: - i) weight difference in stock taken by the survey party. It is ....

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....survey. It is also an admitted position of law that the statement recorded during survey does not carry an evidentiary value. It is also submitted that at the time of survey the statement be extempore and because of several reasons, such as tensed and fear atmosphere, sometime using of duress & coercion by search party, not having in possession the sufficient evidence to prove the facts, misrepresentation or misconception of facts, the party could not spell out the correct facts to the survey team and make the surrender. Further, the assessee did not honor the surrender, meaning which the same are deemed retracted and once the statement is retracted the same loose its evidentiary value. 5. The Ld. D.R. relied on assessment order as well as....