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TMI Blog2015 (8) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... or could not reconcile the difference. In term of the above, we confirm the order of the Commissioner of Income-tax (Appeals) in confirming the action of the Assessing Officer in treating the same as undisclosed purchases added under section 69 of the Act. - Decided in favour of revenue. - I.T.A Nos.124 & 125/Kol/2014 - - - Dated:- 3-2-2015 - Shri Mahavir Singh Shri Shamim Yahya, JJ. For the Appellant : Shri Chiradip Mahalanabish, Advocate For the Respondent : Shri Aloke Nag, JCIT, Sr. DR ORDER Mahavir Singh (Judicial Member).- Both appeals by the assessee are arising out of separate orders of the Commissioner of Income-tax (Appeals)- XXXVI, Kolkata in Appeal No. 232/231/CIT(A)-XXXVI/Kol/Wd- 1(1), Hg/10-11 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer justified undisclosed purchase of ₹ 14,31,276 as undisclosed investment under section 69. 4. That the learned Commissioner of Income-tax (Appeals) was unjustified in applying the Explanation to section 69 of the Income- tax Act. 1961. 5. That the learned Commissioner of Income-tax (Appeals) was not justified in arriving at a profit figure of ₹ 2,35,016 on undisclosed purchase and the ratio calculation adopted by him in arriving at the said profit (gross profit/purchase - 100 i.e. 16.42 per cent.) is considered as hypothetical and his further sustaining of the fact that the same would be under the ambit of section 69 of the Income-tax Act, 1961. 6. That the learned Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re he has disclosed only ₹ 78,32,073 vide letter dated November 8, 2010 and the relevant para as reproduced by the Assessing Officer is again reproduced by us for the sake of clarity, which reads as under : You intend to add this difference amount to profit, but you failed to mention what section of the Income-tax Act empowers you to add enhancement of purchase to profit. You determined the sale as constant. Therefore, difference of purchase is to be added with purchase account. Resultant effect is that purchases will be ₹ 78,32,073 + ₹ 14,31,186 i.e., ₹ 92,63,259 profit will be diminish of loss. There is no law by which undisclosed purchase is to be added to profit. It is against accounting princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account and the purchase which were not shown. However the AIR categorically stated that no books of account are available. Thus no evidence whatsoever was produced to show that the unaccounted purchase was spread over throughout the year over 30 purchases and only a part needs to be taken as unexplained investment under section 69 of the Income-tax Act. Further, on perusal of the return of income filed, it is seen that the assessee's accounts were audited by a chartered accountant. In the Form No. 3CD it has been stated that the books of account maintained were cash book, ledger, stock register etc. In other words all the regular books of account were maintained. Therefore the fact that a part of purchase was not shown in the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome which is against all principles of accountancy. Learned counsel for the assessee relied on the proposition laid down in the case of CIT v. Daya Chand Jain Vaidya [1975] 98 ITR 280 (All). When a query was put, learned counsel for the assessee could not answer, whether he can reconcile the difference before us or before the Assessing Officer but stated that there is no question of any reconciliation because there is a difference exists as per TCS certificate issued by Government of West Bengal being purchases made of Indian made foreign liquor. He only admitted that this can be a posting error. 5. On the other hand, the learned senior Departmental representative Shri Aloke Nag relied on the order of the Assessing Officer as well as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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