TaxTMI 
TaxTMI 
2026 (1) TMI 1302
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....ssessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2015-16. 2. Brief facts of the case is that the assessee is a Partnership Firm engaged in the business of Manufacturing and Trading of Tuver Dal. A survey action u/s. 133A was conducted in the business premises on 02/03/2015 wherein discrepancy in the stock in the form of excess stock of the Tuver Dal, Packing Material, etc. was found amounting to Rs. 1,20,86,080/-. The Partner of the Firm agreed to declare total additional income of Rs. 1,25,00,000/- for the present assessment year. The assessee accounted this additional income of Rs. 1.25 crores as Miscellaneous Income which is credited in the p....
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.... simply on presumptions, without there being any cogent reason and relied upon Hon'ble Madras High Court judgment in the case of CIT v. Chensing Ventures [2007] 291 ITR 258 and Hon'ble Gujarat High Court judgment in the case of CIT v. Shilpa Dyeing & Printing Mills (P.) Ltd. Thus, the assessee requested the A.O. to assessee the correct income. However, the Assessing Officer was not satisfied with the above reply made addition of Rs. 1.25 crores u/s. 69 and taxed r.w.s. 115BBE of the Act and demanded tax thereon. 3. Aggrieved against the assessment order, assessee filed an appeal before Ld. CIT(A) who has confirmed the excess stock found at the premises of the assessee firm was clearly and admittedly not recorded in the stock register or ....
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....aterials which the alleged discrepancy amounting to Rs. 1,20,86,080/-. Therefore the Partner of the Firm agreed to declare additional income of Rs. 1.25 crores in order to buy peace and avoid costly litigation. Accordingly Rs. 1.25 crores is credited as Misc. Income in the Profit and Loss account and offered to tax as 'income from business' for the year under consideration. The said income of Rs. 1.25 crores is accounted in the books of accounts for the Financial Year 2014-15 separately under the head direct incomes with the caption "Misc. Income", in order to match the income disclosed during the course of survey. However, the net profit amounting to Rs. 96,25,027/- which included the income of Rs. 1.25 crores declared is business income a....
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....s. 115BBE of the Act. More particularly, for the Asst. Year 2015-16 which is not at all applicable the provisions of section 115BBE of the Act. 5.2. The Hon'ble Jurisdictional High Court in the case of Shilpa dyeing & Printing Mills Ltd. (cited supra) it was held as follows: "Section 71, of read with sections 69 and 14, of the Income-tax Act, 1961 Losses Intra head set off [Set off against undisclosed income] - Whether for Income declared in survey to be taxed, it has to fall under one of heads of income under section 14 and cannot be taxed separately - Held, yes - Whether, therefore current year loss can be set off against undisclosed income declared in survey - Held, yes [Para 10] [In favour of assessee)" 5.3. Further Co-or....