9911796707
TMI Blog2014 (10) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... n the business of trading of auto, tractor spares and agricultural implements. There was a survey under section 133A on 28.02.2008 and stock to an extent of Rs. 39,28,298 was not found as assessee failed to explain the reasons for short-fall. It seems the Managing Partner admitted an amount of Rs. 50 lakhs for the A.Y. 2008-09 in the course of survey. However, by filing the return of income assessee declared income of Rs. 17,20,015 which include amount of Rs. 10 lakhs credited to P & L Account as additional income. On the reason that assessee has not admitted balance Rs. 40 lakhs disclosed in the course of survey, the A.O. made the addition of Rs. 40 lakhs to the income returned after giving opportunity to assessee. 3. Before the Ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is of the opinion that there is no basis for the assessing officer for making the addition of Rs. 40,00,000/- except the statement recorded from the partner of the firm at the time of survey proceedings. There are no other discrepancies pointed out by the assessing officer and the purchases are verifiable; with VAT returns filed, as per the appellant. There is no relevance for the statement recorded during survey proceedings u/s.133A, without pointing out any evidence/ information that points out to the generation of unaccounted income, as per the appellant. I am of the considered opinion that there is considerable strength in the argument of the appellant and is supported by the judicial decisions relied upon by the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of survey proceedings even though the same was quantified at Rs. 39,28,298. Aassessee has accounted for sales of the deficit stock but as seen from the order of Ld. CIT(A), the same was accounted at Rs. 48,83,168. This aspect has not been reconciled by the ITO. Not only that assessee also admitted additional income of Rs. 10 lakhs which factor was also accepted by the A.O. by making only addition of Rs. 40 lakhs. Since, entire deficit stock cannot be considered as income of assessee, Ld. CIT(A) is correct in deleting the addition made by A.O. as assessee has already admitted gross profit at 25% which is in tune with the gross profit earned during the year on other turnovers. In fact, A.O. himself has recorded the facts vide para 5 of his or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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