9911796707
TMI Blog2015 (7) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... sheets of paper was available on the date of survey by assessee. Same was included in the stock, which was found excess during course of survey. In view of above, separate addition of ₹ 11,46,000/- made by Assessing Officer was not justified. Same was rightly deleted by CIT(A). This factual finding of CIT(A) needs no interference from our side. - Decided against revenue. G.P addition - addition of ₹ 1,77,010/- representing the G.P., made to the total income of assessee as undisclosed income - CIT(A) deleted the addition - Held that:- Addition has been made relating to unaccounted purchases made in cash prior to the date of survey. There is nothing on record to suggest that unaccounted sale of these goods purchased in this ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been disclosed by a partner of the Assessee firm in course of the survey u/s.133A of the I.T. Act. In doing so, the CIT(A) ignored the fact that such disclosure was made over and above the excess stock found during the survey, and the onus was on the part of the Assessee to show that such purchases had not been sold outside the books of account and that, the unaccounted stock found during the survey included such unaccounted cash purchases. 2. The Ld. CIT(A)-XX, Ahmedabad has erred in law and on facts in deleting the addition of ₹ 1,77,010/- representing the G.P. earned from the sale of the unaccounted purchases, on the sole ground that the Assessing Officer had been unable to prove that such sale had been effected prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and Rs.l1,46,000/- out of undisclosed purchase in cash. On being asked to the AR of the assessee firm, it was submitted vide his letter dated 03-11-2009 that As per Profit Loss account, we have shown credit of ₹ 5,79,000/- respect to assets and ₹ 32,56,207/- for stock of material (finished raw) against total declaration of ₹ 51,58,217/-on 28-2-2007. (1) ₹ 11,46,000/- purchases made in cash not recorded (Raw cotton purchases) are included in excess stock on the day of stock verification on 28-2- 2007. (2) As excess stock found on date 28-2-2007 remain as closing stock as on 31-3-2007, why GP ₹ 11,46,000/0- to be added to undisclosed amount. Thus, we request sir to deduct ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Same has been opposed on behalf of Revenue. Learned Departmental Representative requested to set aside the order of CIT(A) and that of Assessing Officer be restored. On other hand, learned Authorized Representative supported the order of CIT(A). 2.2 After going through rival submissions and material on record, we find that assessee is a partnership firm. For the year under consideration, assessee had filed return of income on 06/11/2007 declaring total income at Rs.Nil. The case of assessee was taken up of for scrutiny and notices u/s. 143(2) was issued on 15.09.2008. Assessing Officer made total addition as discussed above. In appeal, CIT(A) observed that Assessing Officer had made discussion only about purchase recorded in these s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounted purchases of ₹ 11,46,000/-. Assessing Officer held that since purchases were unaccounted and same was sold before the survey addition on account of gross profit in such unaccounted sales was also required to be made. 3.1 Matter was carried before the First Appellate Authority and having considered the statement of assessee, CIT(A) deleted the addition in question. Same has been opposed on behalf of Revenue inter alia submitting that order of CIT(A) on the issue be set aside and that of Assessing Officer be restored. On other hand, learned Authorized Representative supported the order of CIT(A). 3.2 After going through rival submissions and material on record, we find that addition has been made relating to unaccoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.76,110 -do- 662287 30-06-2006 Rs.23,943 -do- 662285 30-06-2006 It appears from above that the assessee firm has made the payment otherwise than by an account payee cheque drawn on bank or account payee bank draft. Thus, the assessee firm has made a default u/s.40A(3)(a) of the IT Act, 1961. Accordingly, twenty percent of such expenditure shall not be allowed as a deduction. Hence, a sum of ₹ 56,759/- is added to the total income of the assessee. 4.1 Matter was carried before the First Appellate Authority, wherein various contentions were raised on behalf of assessee and hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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