TaxTMI 
TaxTMI 
2026 (4) TMI 1255
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.....2021 passed u/s 143(3) of the Act pertaining to Assessment Year 2018-19. 2. Brief facts of the case are that the assessee is an individual and is engaged in the business of trading of jewellery. A survey operation u/s 133A was conducted on 16.03.2018 at the business premises of the assessee at M/s. New Modern Jewellers, 214, Kanhaiya Lal Market, New Gate, Chopla Mandir, Ghaziabad. The assessee filed return of income, declaring total income of INR 39,29,230/-. During the course of survey, stock of the assessee was physically quantified and valued by the approved valuer who valued the same at INR 3,65,49,885/-. The survey team based on the books of the accounts of the assessee completed on the date of survey, has taken the value of the cl....
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....by the assessee are general in nature hence, not adjudicated. 6. Ground of appeal Nos.3 to 3.2 raised by the assessee are with respect to the confirmation of the addition made on account of excess stock by changing the section from section 68 to section 69 of the Act without following the procedure of enhancement as provided u/s 251(1) of the Act. 7. Before us, Ld.AR for the assessee submits that Ld.CIT(A) has changed the section for addition on account of excess stock of INR 2,26,39,954/- from section 68 to section 69 without issuing any show cause notice as contemplated u/s 251(1) of the Act. As per ld. AR change of section under which the addition is made, tantamount to enhancement of income which could not be done without issue of....
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....he order of Ld.CIT(A) be sustained on this count. 10. Heard the contentions of both the parties at length and perused the material available on record. In the instant case, AO has made the addition on account of excess stock found during the course of survey however, he inadvertently invoked the provision of section 68 as against invoking the correct section i.e. 69 of the Act. Ld. CIT(A) while confirming the addition, has corrected the error and invoked the correct section i.e. section 69 of the Act. Assessee's argument was that no show cause notice issued prior to such change of section for making/confirming the addition and for this, reliance is placed on the various judgments of the Co-ordinate Bench of the Tribunal. 11. After con....
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....cordance with law. These grounds of appeal taken by the assessee are thus allowed for statistical purposes. 14. Ground of appeal No.6 raised by the assessee is against the confirmation of the addition made by AO on account of difference in purchases of INR 1,03,30,025/- u/s 69C of the Act. 15. Before us, Ld.AR for the assessee submits that the assessee has duly declared the purchases in the books of accounts and once the addition on account of excess stock has been made, again making addition on account of purchases tantamount to double addition. 16. On the other hand, Ld. Sr. DR for the Revenue supported the orders of the lower authorities and requested for the confirmation of the same. 17. Heard the contentions of both the par....
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....P&L Account upto 15.03.2018 available at page 12 of the Paper Book as per which total purchases declared was of INR 2,50,66,424/-. The same is reproduced herein below:- 18. It is an admitted position that after 15.03.2018, assessee has not made any purchases. Since the assessee was provided time to complete the books of accounts which was taken and no purchases was made after 15.03.2018 which is evident from the copy of purchase ledger available at page 20 of the Paper Book, therefore, the assessee has failed to justify the difference of INR 1,03,30,025/- in the amount of total purchase as per trading account prepared after completing the books of accounts as on the date of survey and as per final d accounts. However, if this amount of p....
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....eparate adjunction hence, dismissed. 23. In the result, appeal of the assessee is partly allowed. Order pronounced in the open Court on 17.04.2026. ============= Document 1 12 New Modern Jewellers Chopla Mandir Ghaziabad Profit & Loss A/c 1-Apr-2017 to 16-Mar-2018 Particulars 1-Apr-2017 to 15-Mar-2018 16-Mar-2018 Particulars 1-Apr-2017 to 15-Mar-2018 Stock 57,87,500.00 Sales Accounts ,Opening Diamonds 57,87,500.00 Sale Agst GST @3% 2,46,81,801.91 2,95,93,638.91 Gold Silver Sale Diamonds Ornaments Sale Gold Ornaments 0,70,709.00 38,71,292.00 Accounts 2,50,66,424.05 Sale Sliver Ornaments 1,69,836.00 Purchase Purchase @3% 1,87.87,841.05 Closing Stock GST Diamonds Omaments D G) 1,40,640.00 Diamo....