9911796707
TMI Blog2014 (2) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... closing stock and that of HSD (diesel) - the assessee has stock available as against stock found during the course of survey - the difference being at best can be treated as unexplained stock, which can be added to the returned income of the assessee - thus, the Assessing Officer is directed to restrict the addition at Rs.1,27,035 only – Decided partly in favour of Assessee. Difference on the stock as on date of survey and the statement submitted – Opportunity to adduce evidences – Held that:- The assessee stated that on the two issues the Assessing Officer made addition and CIT(A) also confirmed the action of AO and no proper opportunity of being heard was provided to the assessee and assessee also fails to explain the source of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such the estimated addition of Rs.29,48,133/- as unexplained investment u/s.69 of the I.T. Act is completely arbitrary, unjustified, unwarranted, vindictive, mala-fide and illegal. 4. For that the purchases being restricted but the inflated stock statement submitted to bank for higher cash credit facilities to finance the business from it's closures as such there was no unexplained investment of stock, hence the estimated addition u/s. 69 of the I.T. Act Rs.29,48,133/- is erroneous, perverse, vindictive and illegal." 3. The second inter-connected issue is as regards to difference being found as on the date of survey i.e., on 17-1-2005 and stocks statement submitted to State Bank of India (SBI) as on 31-10-2005 as unexplained investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act was carried out on the business premises of assessee on 17-11-2005. According to assessee as well as Assessing Officer, during the course of survey on 17-11-2005 following stocks were found:- From Nachinda Bazar Item Quantity Rate Value K.oil 5400 Ltrs 9.10 49,140/- HSD 3400 Ltrs 32.63 1,10,942/- Lubricants 202 Ltrs From Rasulpur Service Station:- Item Quantity Rate Value MS (petrol) 4856 Ltrs 46.72 2,24,347/- HSD 7097 Ltrs 32.63 2,31,575/- Lubricants 167 Ltrs The AO has g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lts MS (petrol) 2,24,347 Lts HSD 2,31,575 Lts Lubricants 15,218 Lts Ld. counsel for the assessee stated that on the date of survey i.e. on 31-10- 2005 as well as stock statement is almost similar, which is evident from the stock statement of the assessee and not the stock statement submitted to the bank. According to Ld. counsel for the assessee, there is no difference in the stock statement and this being a controlled item i.e. kerosene oil and HPD (petrol) all the items are controlled and only one supplier, i.e., Indian Oil Corporation (IOC). Ld. counsel for the assessee drew our attention to Petroleum Rules 1976 (3) which clearly extracts as under:- "Petroleum Rules 1976 - Extra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, sell or exchange petroleum products with any other dealer or anybody other than the principal Oil Company." Even as per the Department of Food and Civil Supplies of Government of West Bengal, the oil and lubricants is a licenced item which governed by West Bengal Lubricating Oil Licensing Order, 1967. Ld. counsel for the assessee stated that the complete details of godowns storage place premises etc., are mentioned in the licence nothing more can be attributed to the assessee what is available with her. Ld counsel for the assessee, in view of the above, stated that there is no difference in the stock and stock statement as given to the bank for obtaining higher limits and nothing else. 6. We find from the above facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of the assessee. In view of the above, we direct the Assessing Officer to restrict the addition on both the issues at Rs.1,27,035/- and balance we delete. Accordingly, these two issues of assessee's appeal are partly allowed as indicated above. 7. Next issue i.e., unexplained investment of Rs.17,622/- in Sahara India units and US-64 and also the credit entry in the bank account No.4700 with Balageria Central Co-Operative Bank Ltd., Nachinda Bazar Branch for an amount of Rs.1.50 lakh. For this, assessee has raised following ground No. 7 8:- "7. For that on the facts of the case, the addition of Rs.17,662/- being investment in Sahara India, U-64 has been arbitrarily been confirmed by the Ld. CIT(A) which is wrong and illegal. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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