9911796707
TMI Blog2018 (12) TMI 1206X X X X Extracts X X X X X X X X Extracts X X X X ..... opper's shop, Promart, Waman HariPethe. The stock given to the above parties . account for about to 3.22 crores which includes the stock of assessee's shops at R. City Ghatkopar and Borivli worth around 50 lakhs. Apart from that it was found that the assessee has given articles of 96 lacs for framing. CIT(A) further observed that complete name and addresses of invoices of all the parties to whom assessee had given goods on approval basis were also given to the Survey Officer on 19/10/2010. Accordingly, after having a detailed calculation, the CIT(A) reached to the conclusion that assessee has explained the difference to the extent of 4.18 Crores (Rs.3.22 +0.96) out of total difference of 4.70 Crores. Accordingly, the CIT(A) has deleted addition of 10.07 Crores and upheld addition of 52.55 Lakhs. It is clear from the order of CIT(A) that all the calculations of deficit in the stock was made are as per material on record. The detailed finding so recorded by CIT(A) has not been controverted by learned DR by bringing any positive material on record. Accordingly, we confirm the action of CIT(A) for deleting the addition and upholding part of the addition to the extent of 52.55 lakhs. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant craves leave to amend or to alter any ground or add a new ground, which may be necessary 3. The following grounds have been taken by the assessee:- 1. The order of the Learned Commissioner of Income-tax (Appeals) and that of the Assessing Officer is contrary to the facts and circumstances of the case and is against the principles of equity and natural justice. 2. Under the facts and circumstances of the case and in law the Learned Commissioner of Income-tax (Appeals) has erred in deducing the stock from the erroneous noting of the survey party by way of an arithmetic formula instead of relying on the actual stock worked out by the Appellant as per the year end exercise done by them and thereby not providing complete relief in relation to the order under section 143(3) of the Income-tax Act. 3. The Learned Commissioner of Income-tax (Appeals) has erred in partially upholding the addition made by the Assessing Officer under section 143(3) of the Income-tax Act. 4. The appellant craves leave to add, amend, alter or delete and/or modify the above grounds of appeal before or during the course of hearing. 4. Rival contentions have been heard and record perused. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Survey. The DDIT (Inv.) and the AO should have compared with the items appearing in the computer sheet with the stock inventorised during the course of Survey and find out the specific of stock which is no found during the course of Survey. The survey team as well as AO has not taken any effort in this regard to find out the actual shortage of stock. During the Survey not a single instances of purchase or sale outside the books of accounts was found. The Assessing officer has accepted the audited opening stock, closing stock, purchases and sales of the appellant for the year. The AO has neither mentioned in her order any fault or defect in the audited opening stock, closing stock, purchases and sales of the appellant nor did she reject the books of accounts. In absence of material evidence that any excess amount was passed on to assessee, making addition on mere doubt could not be held as correct. During the appellate proceedings, the appellant has further shown as to how the modus operandi was followed by him in the year under appeal. The same was followed by him in the past year. However, the AO did not bring on record any material to show that facts of the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant that complete name and addresses of invoices of all the parties to whom appellant have given goods on approval basis were given to Survey Officer on 19.10.2010. Thus, assessee has explained the difference to the extent of ₹ 4.18 crores. (Rs.3.22 + 0.96). The same was also reiterated before the AO vide submission made by the appellant on 4.3.2014 during the course of assessment proceedings. The A.O. as well as the DDIT (Inv.) rejected the contention of the appellant without proper verification of facts. It is clear fact that primary onus is on the appellant to substantiate the facts where the appellant fails to discharge such onus, the A.O. also to make a proper enquiry and bring evidence on record to find out truth before making additions. The AO and DDIT (Inv.) has not shown any intention to make enquiry. If they were satisfied that these entries and facts of appellant are not genuine they have every right to add these as income. But before rejecting the appellant's explanation AO must make proper enquiries and in the absence of proper enquiries, addition cannot be sustained. 5.17 During the Survey operation, assessment proceeding and also during ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,45,331/- (MRP), thus there was deficit of stock of ₹ 10,61,71,434/-. Accordingly an addition of ₹ 10,61,71,434/- was made by the AO. 10. By the impugned order, CIT(A) after considering the facts of the case and evidences furnished before the lower authorities deleted the addition of ₹ 10,07,03,903/- and upheld addition of ₹ 52,55,187/-. Against the order of CIT(A) both assessee and revenue are in appeal before us. 11. From the record we found that addition was made by the AO by taking the MRP of stock lying at the business premises. The survey team relied upon the computerized sheet of MRP and the difference has been worked out between the value mentioned in the said sheet and value of physical manually prepared by the Survey team by adopting the MRP for valuation. The CIT(A) observed that inventories were prepared by Survey team with the help of sale employee. There was no material to suggest that employee concerned were properly authorised to certify the value of stock found during the Survey. The CIT(A) observed that during the course of Survey inventory were prepared item wise by the DIT (Inv.), however, the DDIT and AO has not given any finding on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
