9911796707
TMI Blog2014 (5) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... self - By no stretch of imagination can it be stated that the issue that the AO now desires to raise for which the notice for reopening has been issued, flows from failure on the part of the assessee to disclose necessary facts. The assessee made a disclosure during survey of unaccounted stock - He forwarded it by filing a return maintaining such disclosure giving shape of declared income - If the AO felt that valuation of the stock was inaccurate - the disclosure was not full and he could as well have taxed the additional income, which in his opinion was not reflected by the assessee - it cannot be said that the income chargeable to tax had escaped the assessment due to failure on the part of the assessee to disclose truly and fully all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of survey while include profit element also. Therefore, the deduction of 15% of profit considered for valuation of undisclosed stock is not correct. 2. In view of the above facts, I have reason to believe that the income chargeable to tax has escaped assessment for the A.Y. 20006-07 within the meaning of section 147 of the IT Act, 1961 in this case. 4. Armed with the reasons, the petitioner raised detailed objections to the reopening of the assessment under a communication dated January 21, 2014. In such objections, the petitioner primarily touched two aspects. Firstly that there was no failure on the part of the petitioner to disclose truly and fully all material facts for assessment. Secondly that while ascertaining unaccounted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been made. 7. In the return that the assessee filed consequent to the survey operation, he had disclosed a sum of Rs.1,29,36,304/-. When called upon to explain this disclosure during the assessment proceedings by the Assessing Officer, the petitioner in detail reply dated September 05, 2008, provided the reconciliation as under : (27) Reconciliation of disclosure made of Rs.1,03,79,735/-. As can be made out from the question No.11 of the statement of our Karta Shri Rajendrabhai K. Patel recorded during survey on 10.03.2006, the sale value of total physical stock found at our business premises was of Rs.2,13,74,575/- on the date of survey. As stated in same question No.11, the cost of stock as on the date of survey as per our b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of survey. 1,66,40,089/- As submitted earlier, the book stock on the date of survey was of Rs.62,87,139/-. Thus, on the date of survey excess stock of Rs.1,03,52,949/- was found (i.e. Physical stock of Rs.1,66,40,089/-Book stock of Rs.61,87,139/-- 1,03,52,949/-). Kindly note that the cost of above excess stock was admitted as additional income by us through our Karta on the date of survey. Similarly, as can be seen from the questions No.9 10 and answer No.9 10 of the statement of our Karta recorded during survey, on the date of survey the physical cash found was of Rs.3,51,958/- as per Annexure CF.1. As can be further made out from the said questions and answers, the cash as per books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ails your goodself will found that through our return of income we made disclosure of income of Rs.1,29,36,304/-as against the admitted disclosure of Rs.1,03,79,735/-. A statement indicating accounting entries made for above disclosure is enclosed. 8. Thus, the entire modality of disclosing undisclosed income of Rs.1,29,36,304/-was placed before Assessing Officer during the proceedings of assessment itself. This included a sum of Rs.1,03,79,735/-as an amount admitted during the survey. It also included further sums of Rs.3,33,354/- of cash and Rs.22,53,000/- receivable, which did not form part of the proceedings during the survey. 9. If the Assessing Officer, therefore, had any doubt or dispute pertaining to valuation of the undis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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