9911796707
TMI Blog2018 (6) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessment proceedings intimated to the ld AO what are the correct facts and filed evidences in support of its claim. The assessee had supported its contentions based on the entries in the regular books of accouns that were duly audited and submitted before the ld AO - AO categorically agrees that the said books of accounts were examined by him in the assessment proceedings and no adverse remarks were passed on the same by him in his order. The books of accounts submitted by the assessee were not rejected by the ld AO - DR could not produce any contrary evidence on record to prove that the addition has been made other than placing reliance on statement recorded from the partner - Addition to be deleted - Decided against revenue - I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vey proceedings, it was found that the opening stock was reflected at ₹ 2,57,14,529/-, purchases reflected at ₹ 3,16,78,083/- and sales up to the date of survey reflected at ₹ 3,20,68,526/-. Therefore, the closing stock balance as on the date of survey was arrived at ₹ 2,53,24,085/-. But during the survey, it was found in physical verification that there was a difference in stock amounting to ₹ 57,34,905/-. In the survey proceeding, a question was raised in this regard. One of the partner of the assessee firm replied that Our establishment is wide in size that I cannot look after entire dealing. But due to mistake some local purchases made during the year has not been entered into the register due to which it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ledge of accounting software as well. It was submitted that as for physical verification of stock , it may be said such exercise in survey, especially in a big book selling establishment, is a patent impossibility. The exercise requires suspension of sale for couple of days with enormous man-hours. It was submitted that such futile impromptu effort for constructing the accounts was of no practical use for the assessment to be made. The assessee stated that the comparative figures as on 14.2.2011 are as under:- Particulars Figure as per Survey Report Figure appearing in Completed A/c Purchases 3,16,78,083 7,93,38,109 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill date of survey i.e 14.2.2011 was in the sum of ₹ 7,93,38,109/- and the sum of ₹ 57,34,905/- alleged as undisclosed purchase was more than covered proving the allegation as myth. Again , the actual stock of the day as per the accounts was ₹ 4,72,53,784/- as against ₹ 3,10,58,990/- taken by the survey team. So there could not be any excess stock on the date of survey as alleged by the survey team. The ld CITA sought for a remand report from the ld AO who in turn had reiterated what has been stated in the assessment order. In the said remand report, the ld AO had placed heavy reliance on the statement recorded from the partner of the assessee firm and had even extracted certain portions of the statement therein. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment proceedings and no adverse remarks were passed on the same by him in his order. The books of accounts submitted by the assessee were not rejected by the ld AO. Accordingly, the ld CITA deleted the addition of ₹ 57,34,905/-. 6. We have heard the rival submissions. The facts and figures that were stated before the ld CITA in the submissions of the assessee pointing out various fallacies in the difference in stock arrived by the survey team, remain undisputed, and hence the same are not reiterated for the sake of brevity. We find that the ld CITA had given a detailed finding which remain uncontroverted by the revenue before us. The ld DR could not produce any contrary evidence on record to prove that the addition has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
