9911796707
TMI Blog2018 (6) TMI 1668X X X X Extracts X X X X X X X X Extracts X X X X ..... and the learned Commissioner of Income Tax (Appeals) has erred in partially confirming the same. The impugned order to the extent confirmed by the CIT(A) being bad in law is required to be quashed. 2.1 In any case and without further prejudice the Assessing Officer had erred in adding an amount of Rs. 1,82,527/- cash difference found during the course of survey as income. 2.2 The authorities below have erred in holding that the shortage of cash which could not be explained on the da of survey to be the appellants income. 2.3 During the course of hearing, the authorized representative had requested for telescoping the shortage of cash to excess stock found which was not agreed by the authorities below. 2.4 In any case, the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.12.2013. During the course of survey proceedings, stock verification was carried out at the business premise wherein, the physical stock inventorised was at Rs. 57,63,631/- whereas the value of stock as per books was Rs. 33,52,763/- resulting in an excess stock of Rs. 24,10,868/-. In addition to this, cash balance as per books of account as on the date of survey was found to be Rs. 1,82,527/- whereas, no cash was found on the date of survey. When confronted, the assessee stated that the difference would be reconciled after consulting with other partner. As there was no response from the assessee, Statement of Shri. Ravi Krishnaji Khapare brother of Shri. Shrikant K Khapare partner - M/s. Khapare Shutters was recorded on 24.12.2013, wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of Rs. 1,82,527/-. The AO has noted that the assessee firm has declared additional income of Rs. 24.20 Lakhs in the P&L account whereas no additional income was declared in respect of short cash found of Rs. 1,82,527/- and therefore, the AO made addition of short cash found of Rs. 1,82,527/-. We fail to understand the basis of making this addition. In fact, in the absence of any other evidence regarding the user of such cash available as per cash book but not found physically at the time of survey, the same should have been considered as utilized for purchasing goods which was found in excess of book stock and therefore, even in respect of excess book stock, extra income to be declared or added could have been reduced to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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