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TMI Blog2014 (2) TMI 1261X X X X Extracts X X X X X X X X Extracts X X X X ..... iness premises of the assessee on 27.2.2008. In the course of survey operation, the assessee had offered an additional income of Rs. 15 lakhs for the purpose of assessment and to be included in the return to be filed before the tax authorities. But, when the return was filed, the assessee offered a total income of Rs. 12,22,413/-. When he was questioned on the additional income of Rs. 15 lakhs offered at the time of survey operation, the assessee explained that the said additional amount of Rs. 15 lakhs has already been brought into the accounts by crediting the capital account of the assessee and accordingly the said amount has formed part of the computation of income in the hands of the assessee. But, the total income has come down to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. 6. We extract the detailed grounds of appeal raised by the Revenue, as follows:- "2. The ld CIT(A) erred in holding that since books of accounts were not maintained regularly and additional income was also offered under the survey operation u/s.133A of the Act, it would not be fair on the part of the AO to resort to disallowance of the expenses separately under the head commission payments, business promotion expenses, discount allowed and sundry expenses; 2.1 The ld CIT(A) failed to appreciate the fact H. Gautham Chand Jain is an assessee in the status of an individual and also runs a proprietorship concern, in the name of M/s Gautham Pharma, where the gross turnover exceeded Rs. 90 lakhs and tax audit report has been submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock register, cash book, bank pass book and general ledger in support of the claim of expenditure. The said report is "CLEAN" and not qualified as to the correctness of the claim of expenditure. In the light of this, the disallowance by the AO on the specific head of expenditure for non production of vouchers was in accordance with law." 7. We heard both sides in detail and examined the records of the case placed before us. The Assessing Officer has discussed the issue of additional income of Rs. 15 lakhs in a very detailed manner at pages 2 and 3 of his order. He has pointed out that the survey was carried out on 27.2.2008 and the major portion of the expenses had been booked by the assessee only after the said date of survey. He compared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome. We extract the exact observation made by the Commissioner of Income Tax (Appeals):- "I had gone through the submissions made by the AR and the observations of the A.O. It is a fact admitted by the assessee during the course of survey u/s 133A that the books of accounts were not regularly maintained. In order to overcome its deficiency, the assessee has come forward by disclosing the additional income of Rs. 15 lakhs over and above his regular income." 9. It is seen that the assessee has not maintained proper accounts. Then, how it is possible for the assessee to establish that he has incurred additional amount of expenditure that too after the date of survey? It is seen that the assessee has brought the additional amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority in detail, we come to a formidable conclusion that the assessee has manipulated his claim of expenditure so as to offset the revenue effect of additional income of Rs. 15 lakhs offered by him in the course of survey. It is an undisputed fact that the amount of Rs. 15 lakhs was offered by the assessee as additional income over and above his regular income from the business. Therefore, it is not permissible for the assessee to dilute the said amount of additional income by overstating the expenditure. 12. In the facts and circumstances of the case, we find that the Assessing Officer has rightly made an addition of Rs. 15 lakhs and the same has to be sustained. We set aside the order of Commissioner of Income Tax (Appeals) on the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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