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TMI Blog2018 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee were considered by the CIT(A) and partly accepted. The genuine claims of the assessee as made in reconciliation were accepted and those which were afterthought and unsupported by any positive evidence were rejected. Under these circumstances, in our considered view the part addition so sustained by ld. CIT(A) was justified. - ITA No. 23/JP/2017 And ITA No. 11/JP/2017 - - - Dated:- 27-2-2018 - SHRI VIJAY PAL RAO, JM AND SHRI BHAGCHAND, AM For The Assessee : Shri Manish Agarwal, CA For The Revenue : Smt. Neena Jeph, JCIT - DR ORDER PER BHAGCHAND, AM Both these appeals are the cross appeals filed against the order of the ld. CIT(A)-III, Jaipur dated 28-10-2016 for the Assessment Year 2012-13 raising ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and in the circumstances of the case, the ld. CIT(A) erred in deleting ₹ 9,09,635/- out of total trading addition made by the AO (Rs. 50,01,026+Rs. 1,71,897) on the ground that g.p. rate of 22.64% should have been applied on the trading account prepared during survey as against the g.p. rate 18.79% applied by the survey team. 2.1 Apropos Ground No. 1 and 1.1 of the assessee and Ground No. (i) and (ii) of the Revenue, the facts as emerges from the order of the ld. CIT(A) are as under:- 4.3 I have carefully considered the facts of the case, finding of the AO and submission of the appellant. The AO made the addition on the basis of trading account prepared at the time of survey and surrender made by the Director. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry not accounted for as on the Date of survey ₹ 4,04,113/- On perusal of the assessment order and A/R submission, I find that the contention of A/R in respect of difference in opening stock by ₹ 23,27,679/- and difference in gross profit due to lower g.p. rate taken by ₹ 9,09,635/- appears to be correct. The survey team took opening stock at ₹ 46,39,452/- though audited accounts shows opening stock at ₹ 69,67,131/-. Thus the opening stock was considered short at the time of survey by ₹ 23,27,679/- which is fully verifiable from audited accounts and same is therefore, accepted. In respect of g.p. rate difference, it is seen that survey team prepared trading account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him on account of alleged excess stock found during survey. Thereafter vide affidavit dated 14-09-2011, Shri Gaurav Jain had made retraction. The return of income was filed declaring total income at ₹ 24,14,770/-. Assessment was completed by the AO wherein provisions of sec 145(3) were invoked and additions of ₹ 51,72,923/- were made being the difference in stock as per trading account prepared on the date of survey and that physically found. The additions were made on the basis of discrepancies found in survey and statement recorded. The relevant para as to making the addition of ₹ 50,01,026/-and ₹ 1,71,897/- by the AO is as under:- the assessee through its Director Shri Gaurav Jain surrendered the excess sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence were allowed resulting into the deletion of addition to be extent of ₹ 32,37,314/- and for the remaining amount of ₹ 19,35,591/-, it was observed by ld. CIT(A) that the same is an afterthought. After going through the factual details filed and considering the pleadings of both sides, we hold the ld. CIT(A) has considered all genuine pleadings and reconciliation in right perspective and allowed part relief. The other grounds of reconciliation are bald assertion not supported by any independent and positive evidence. These are simply afterthought which have no weightage in the eyes of law.It is undisputed fact that the books of accounts of the assessee were incomplete as on the date of survey, therefore the same cannot be acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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