TaxTMI 
TaxTMI 
2025 (3) TMI 2120
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....to unexplained money and the addition relating to estimation of profits. 2. The assessee is an individual and is engaged in the business of trading in gold jewellery under the trade name M/s Sonam Jewellers. It was noticed by the revenue that the assessee has deposited cash of Rs. 2.09 crores in his bank accounts during demonetization period. Hence a survey operation u/s 133A of the Act was conducted in the hands of the assessee on 18-01-2017 by the investigation wing. Before the survey officials, the assessee stated that he had deposited cash into his bank accounts out of cash sales made by him during that period. Subsequently, the assessee filed his return of income declaring a total income of Rs. 14,72,970/-. In view of the survey ope....
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....rnish those details. Accordingly, by placing reliance on the report given by the survey officials, the AO rejected the book results. Accordingly, he assessed the cash deposit of Rs. 2,09,22,000/- as unexplained money u/s 69A of the Act. Further, the AO noticed that the assessee has declared total turnover of Rs. 3,90,71,272/- in the profit and loss account. The AO reduced the above said cash deposit of Rs. 2,09,22,000/- and arrived at the balance sales figure of Rs. 1,81,49,272/-, on which he estimated profit @ 7%, which worked out to Rs. 12,70,449/-. The AO adopted the same as business income of the assessee as against the income declared by the assessee. 4. The Ld CIT(A) confirmed both the additions and hence the assessee has filed thi....
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.... the assessee cannot be found fault, since most of the sales made by the assessee were for less than Rs. 2.00 lakhs. With regard to the difference in the quantity of gold received in the month of October, 2016, the Ld A.R submitted that the silver items purchased from M/s Narrondass Manordass through two bills weighing 1300 grams was wrongly included in the gold inventory and hence there was difference in the quantity of gold. With regard to the difference between the physical gold and book stock, the Ld A.R submitted that some of the bills were omitted to be recorded in the books and hence there was difference. He submitted that the survey officials themselves have recorded that books of accounts have not been updated at the time of survey....
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....ions and surmises. He submitted that the sales were higher in the months of October and November, 2016 in view of the festival seasons like, Dusserah, Danderas and Diwali festivals. Usually, the revenue finds suppression of sales, which is not the case here, i.e., higher sales reported by the assessee is being doubted with. However, the AO is placing reliance on the very same sales turnover reported by the assessee to determine the total income of the assessee. Further, it is not the case of the AO that the assessee did not possess sufficient stock to carry out the sales. 8. We heard rival contentions and perused the record. We notice from the assessment order that the AO has mentioned that the assessee has not furnished any details. How....
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....ce, the AO was not justified in rejecting the book results on the basis of discrepancies found at the time of survey operations, since those discrepancies were since rectified at the time of filing return of income. 9. We notice that the assessee has furnished month wise quantity details of gold, but the same has been rejected by Ld CIT(A) on the reasoning that it was only summary of all months. There should not be any dispute that monthly summary could be prepared on the basis of daily summary only and it is not the case of the Ld CIT(A), that there were deficiencies in the daily summary also. Hence we are unable to accept the view expressed by the Ld CIT(A). We also notice that the assessee was having sufficient stock of gold, from whi....