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TMI Blog2013 (7) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of Rs.19,08,28,714/- made on account of inflated purchases? B. Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT(A) in deleting the addition of Rs.1,36,21,468/- made on account of sale of scrap? C. Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT(A) in deleting the addition of Rs.23 lakhs made on account of unaccounted stock? D. Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by CIT(A) in deleting the addition made on account of unaccounted investment of Rs.19,650/-? At the outset, we may record that question D pertains to an amount which is extremely small. Such question, only on tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of search. The Assessing Officer, discarded the assessees several contentions, such as, that Pratima Traders retained only a small portion of cost by way of commission and cost of certain services in the nature of transport, etc. was borne by the broker, and so on. Be that as it may, to the extent the Assessing Officer made additions on the basis of such findings for the period between 1.4.98 till the date of search, the Tribunal ultimately retained the additions. With respect to such additions, we are not concerned with in this appeal. We may, however, notice that the assessee has independently challenged such additions in their Tax Appeals and such appeals are admitted. We are, therefore, confining our observations to the extent the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the price prevailing in auction and majority of purchases, i.e. roughly more than 90% of the total purchase are made from M/s.Pratima Traders. The Assessing officer after analyzing the seized material of purchases found from the assessee for the period April, 1998 to July 1998, re-worked the inflated price by enhancing from 2 to 8% in financial years 1993-94 to 1998-99 and accordingly estimated the inflation of purchase price at Rs.12,99,98,281/- Similarly, the AO by assuming the approximate inflation at 5% for the period prior to financial year 1993-94, falling in the block period, estimated the inflation in purchase price at Rs.6,08,30,488/-. Accordingly, the AO made addition of undisclosed income on amount of inflation in purchase price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . roughly more than than 90% of the total purchases are made from M/s.Pratima Traders even the Ld. Counsel for the assessee has also made the alternative plea for assessing the undisclosed income on the basis of seized materials for the period to which the seized materials pertains, which is for the period April to July 1998. Accordingly, we direct the Assessing Officer to recompute the undisclosed income from the period 1st April 98 to 16th July 98 on the basis of inflation in purchase price and make addition accordingly. This issue of the Revenues appeal in IT(SS)A No.107/Ahd/2002 is partly allowed as indicated above. 6. We are broadly in agreement with the view of the Tribunal noted above. It may be that on the basis of the seized mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for. The prime contention of the assessee was that such stock represented the on account stock supplied by the suppliers. After full verification and also enabling the Assessing Officer to comment on the additional evidence produced by the assessee, the CIT (Appeals) made the deletion. The Tribunal upheld such findings observing as follows: 28. We have heard the rival contentions and gone through the facts and circumstances of the case. We find that the Assessing Officer in this remand report submitted vide dated 07.02.2001 has stated that the assessee has submitted the explanation in respect of stock found at other places have already been considered during the course of assessment proceedings. We find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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