9911796707
TMI Blog2004 (8) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... been found and seized for a part period of the accounting period. No sales can be estimated where no information at all had been obtained during the course of search and no information is available on the basis of the seized record that the assessee had indulged in out of the books transaction for a part of the year. For these years, the sales cannot be estimated. Thus, we find no infirmity in the order of the learned CIT(A) in both the cases. Undisclosed Income - It is clear from the perusal of the reply of the assessee that this is the case of credit purchases and the payment for the credit purchases was made after effecting the sales. No investment was required. Secondly, the learned Authorised Representative has rightly placed reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals are common, which relate to deletion of addition of Rs. 9,82,741 made on account of undisclosed excess stock found during the course of search operation. The AO made this addition on substantive basis in the case of M/s M.M. Sales Agencies and on protective basis in the case of M/s M.M. Enterprises. 3. The brief facts of the case are that in this group, search was conducted on 24th Feb., 1999. On the basis of the inventory prepared of the stock found during the course of search, the AO worked out the excess stock of Rs. 9,82,741 on the basis of the trading account prepared by him. He worked out closing stock of M/s M.M. Sales Agencies at Rs. 39,34,119 and closing stock of M/s M.M. Enterprises at Rs. 73,120, totalling to Rs. 40,07,23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sport companies. Copies of purchase invoices, builty, proof of the delivery of goods by transport companies have been filed. Further, the list of rate difference, goods in transit, stock replacement was filed. 6. The learned CIT(A), on the basis of above arguments and evidence, has rightly held that the AO was not justified in not taking into account the purchases of Rs. 12,36,021. If the purchases are taken into account, there would be a shortage of Rs. 4,10,574 and assessee's sister-concern, M/s M.M. Enterprises, had already declared and disclosed profit @ 6 per cent on shortage of stock of Rs. 4,10,574. Therefore, the learned CIT(A) has rightly deleted the addition made in the hands of both the concerns after appreciation of the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1996-97, for which no document or information regarding unaccounted sales even for part of the year was found and seized. We agree with the view of the learned CIT(A) that the sales are to be taken on the basis of the seized documents and the sales are to be estimated only for the year for which the information or document had been found and seized for a part period of the accounting period. No sales can be estimated where no information at all had been obtained during the course of search and no information is available on the basis of the seized record that the assessee had indulged in out of the books transaction for a part of the year. For these years, the sales cannot be estimated. Thus, we find no infirmity in the order of the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 is written and then the payment made thereafter is reduced from total outstanding. Therefore, it shows that the payments have been made after sale of goods by the assessee-firm and no investment for purchase of goods was made by the assessee-firm. Similarly, page Nos. 139 and 140 of Annex. 'A' which contain summary transaction of page Nos. 133 to 139 also show that goods worth Rs. 4,99,000 have been purchased on credit in the month of November, 1997, and payments against such purchases commenced from December, 1997, to June, 1998, in petty amount of Rs. 20,000 to Rs. 40,000 in cash. In this case also, there is no investment made by the assessee-firm for the purchase of goods during financial years 1997-98 and 1998-99. In the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o interfere with the order of the learned CIT(A) in both the cases. 13. Ground No. 6 in the case of M/s M.M. Sales Agencies and ground No. 7 in the case of M/s M.M. Enterprises are common regarding directing the AO not to charge interest under s. 158BFA(1) upto the period 19th March, 2000, in the case of M/s M.M Sales Agencies and not to charge interest under this section upto 12th March, 2000, in the case of M/s M.M. Enterprises. 14. We have heard the rival parties. We are of the opinion that no interest should be charged under s. 158BFA(1) upto the date of supply of Photostat copies of the seized documents as this delay is not attributable to the assessee. This ground is restored to the AO for determination of interest payable, if any, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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