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TMI Blog2020 (2) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... ome, no separate addition of the same amount as income of the assessee under any other Section of the Act can be made as it would be a double addition. In the result, we delete the addition made and allow its claim of the assessee. Appeal of the assessee is allowed. - I.T.A. No. 1329/Kol/2018 - - - Dated:- 26-2-2020 - Shri J. Sudhakar Reddy, Accountant Member and Shri S.S. Godara, Judicial Member For the Assessee : Sh. Miraj D. Shah, A/R For the Revenue : Sh. Supriyo Pal, JCIT, Sr. DR ORDER PER J. SUDHAKAR REDDY, AM: This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)-13, Kolkata [ CIT(A) for short] dated 30.03.2018 u/s 250 of the Income Tax Act, 1961 ( the Act for short) for AY 2014-15. 2. The assessee is a partnership firm and is in the business of manufacturers, wholesalers and traders of gold ornaments. It filed its return of income on 21.07.2014 declaring total income of ₹4,24,260/- for the AY 2014-15. 3. On 21.05.2013 Mr. Rakesh Gupta, a partner of the firm was intercepted in Delhi Airport and was found in possession of ₹60 lakh in cash with him. Mr. Rak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other documents in lieu of their deposits. The above plea taken by the assessee is not genuine. It is very difficult for any person to remember the name and amount of advance near about 500 parties. The assessee consciously and very cleverly filed his reply just before few days when the case will be going to time barred so that the documents filed will remain unverified. The said survey u/s 133A was conducted on 21/05/2013 i.e. three years before. So the record of these persons from whom the advance was taken should be kept in the possession of the assessee firm. But from then and during the entire scrutiny proceedings the assessee failed to file. The intention of the assessee firm to delay in submitting their submission is not only mala fide, planned and tailor made but also bogus. 5. Aggrieved, the assessee carried the matter in appeal before the ld. CIT(A) without success. 6. The ld. CIT(A) referred to the statement recorded from Mr. Umesh Gupta on behalf of M/s. New Pooja Jewellers on 21.05.2013 and thereafter came to a conclusion that the assessee was not able to explain during the course of, survey conducted at its business premises, the source of the money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of survey operation on 21.05.2013. He pointed out that Mr. Umesh Gupta in his statement admitted that he maintained calculations in rough pages. He argued that the claim of the assessee that advances were received from 450 parties on the occasion of Ramnavami Nayakhata was not supported with evidence and that the creditworthiness and identity of these parties were not proved by the assessee. He took this Bench to the findings of ld. CIT(A) at pages 12-14 of the order and relied on the same. 10. The ld. Counsel for the assessee relied on the decision of ITAT in the case of M/s. Nitisha Silk Mills Pvt. Ltd. vs. ITO, Ward-1(4), Surat reported in 2012 (11) TMI 281 ITAT, Ahmedabad. 11. We have heard rival contentions. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well as case law cited, we hold as follows. 12. The AO is factually wrong in recording that the assessee for the first time before the AO had explained the source of ₹60 lakh found in the possession of Mr. Rakesh Gupta. The cash flow statements as well as the explanations were in fact filed by the assessee befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ON SURVEY ARE EXPLAINED IN ANNEXUTES 1 TO 4 ABOVE. THE SURVEY PARTY HAS SEIZED DOCUMENTS STATED IN SL.NO. 1 TO 9 OF ANNEXURE 1 ONLY AND TOOK AND KEPT IN THEIT CUSTODY. 8. BOOKS AND ACCOUNTS OF THE FIRM ARE MAINTAINED IN COMPUTER CONSISTING OF CASH BOOK, BANK BOOK, JOURNAL BOOK, GENERAL LEDGER, SALES DAY BOOK, PURCHASE DAY BOOK, SUNDRY DEBTORS AND SUNDRY CREDITORS LEDGER, STOCK BOOKS, PRODUCTION AND CONSUMPTION REGISTERS, TRAIL BALANCE, PROFIT AND LOSS ACCOUNT AND BALANCE SHEET ETC. THESE RECORDS ARE PROCESSED WEEKLY AND MAINTAINED DAY TO DAY BASIS. ALL THESE RECORDS ARE UPTO DATE AND MAINTAINED UPTO LAST DAY OF THE 2ND WEEK OF JULY, 2013 I.E 07.07.2013. II. INFORMATION AND EXPLANATIONS ON ARTICLES AND DOCUMENTS SURVEYED AND SEIZED BY THE DEPARTMENTS 1. SALE OF GOLD ORNAMENTS IS DOCUMENTATED WITH TAX INVOICES (SALES INVOICES). TAX INVOICES ARE MADE IN ACCORDANCE TO THE WEST BENGAL VALUE ADDED TAX ACT AND RULES CONTAINING OF VAT REGISTRATION NUMBER, TAX INVOICE NO. DATE, CUSTOMERS NAMES ETC AS REQUIRED BY THE W.B. VALUE ADDED TAX ACT. EACH SALE EITHER OF CASH OR CREDIT ARE SUPPORTED WITH THE TAX INVOICE. BOUNDED SALES INVOICES STATED IN SL.NO. 1, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S INVOICES IN ID MARK - NPJ/5 CONSISTING OF TAX INVOICE NO 951 TO 1000 DENOTES FOR SALES OF GOLD ORNAMENTS DURING THE PERIOD FROM 12.06.2012 TO 16.08.2012. THESE SALES ARE EFFECTED IN FINANCIAL YEAR 2012-2013 AND DULY RECORDED IN COMPUTARISED CASH BOOK AND BANK BOOK, SALES DAY BOOK, SUNDRY DEBTORS REGISTER AND STOCK BOOKS ETC AND ACCOUNTS IN THOSE YEAR. COMPUTARISED CASK BOOK AND OTHER BOOKS AND ACCOUNTS FOR FINANCIAL YEAR 2012-2013 ARE AVAILABLE. HONORABLE SIR MAY VERIFY THESE TRANSACTIONS WITH THESE BOOKS, ACCOUNTS AND RECORDS. F. SALES INVOICES IN ID MARK - NPJ/6 CONSISTING OF TAX INVOICE NO 1101 TO 1150 DENOTES FOR SALES OF GOLD ORNAMENTS DURING THE PERIOD FROM 02.01.2013 TO 26.02.2013. THESE SALES ARE EFFECTED IN FINANCIAL YEAR 2012-2013 AND DULY RECORDED IN COMPUTARISED CASH BOOK AND BANK BOOK, SALES DAY BOOK, SUNDRY DEBTORS REGISTER AND STOCK BOOKS ETC. AND ACCOUNTS IN THOSE YEAR. COMPUTARISED CASK BOOK AND OTHER BOCKS AND ACCOUNTS FOR FINANCIAL YEAR 2012-2013 ARE AVAILABLE. HONORABLE SIR MAY VERIFY THESE TRANSACTIONS WITH THESE BOOKS, ACCOUNTS AND RECORDS. G. NOTE BOOKS IN ID MARK - APJ/7 NPJ/ 8 CONTAINING MISCELLANEOUS ENTRIES DENOTES TO DISCUSSION MATTERS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SE OF PURCHASE OF STOCKS OF GOLD ORNAMENTS. INSPITE OF THAT EXPLANATIONS THE AIR PORT AUTHORITY WERE NOT SATISFIED WITH THE SAME AND SEIZED ENTIRE CASH AMOUNTS OF ₹ 60,00,000.00 FROM MR. RAKESH KUMAR GUPTA. SINCE ALL RELATED DOCUMENTS ARE MAINTAINED AND AVAILABLE AT KOLKATA NOTHING COULD BE PRECEDED THERE EXCEPT TO RELEASE THE SAME AT KOLKATA AFTER PRODUCING OF PROPER BOOK'S AND DOCUMENT. C. THE BUSINESS HAS ALWAYS INFLOW AND OUTFLOW OF CASH FROM CUSTOMERS, SALES, ADVANCE AGAINST ORDER, DEPOSITS ON RAM NAVAMI NAYAKHATA ETC. AND BANKING TRANSACTIONS. THE FOLLOWING ARE INFLOW AND OUTFLOW OF CASH AS ON DURING THE PERIOD FROM 01.04.2013 TO 21.05.2013. (ON THE DATE OF SURVEY) OPENING CASH IN HAND ON 01.04.2013 ₹ 6,00,171.00 ADD: AMOUNT RECEIVED FROM DEBTORS, CASH SALES, DEPOSITS AGAINST ORDER WITHDRAWALS FROM BANK, DEPOSITS FROM CUSTOMERS ON RAM NAVAMI NAYAKHATA ETC ₹ 69,35,887.00 LESS: CASH DEPOSITED TO ICICI BA Rs.(14,53,000.00) AMOUNT PAID FOR EXPENSES ETC Rs. (1,87,642.00) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D BANK BOOK MAINTAINED BY THE FIRM. 4. INVENTORY OF JEWELLERY AS DETAILED IN ANNEXURE 4 OF SURVEY STATEMENT i. JEWELLERY VALUE ₹ 1,02,47,074.00, AS VALUED BY GOVT. APPROVED VALUER, WEIGHTED 4082.500Gms. WAS FOUND DURING THE COURCE OR SURVEY OPERATION CONDUCTED ON 21.05.2013. ii. THE FIRM DEALS IN MANUFACTURING, WHOLE SALE AND TRADING OF GOLD OF!NAMENTS. THIS JEWELLERY IS STOCKS HELD ITEM IN THE E1USINESS. SINCE THESE ARE REGULAR STOCKS OF THE BUSINESS AND EXPLAINED PROPERLY THE SAME HAVE NOT BEEN SEIZED AND RETAINED IN BUSINESS AFTER NOTING IN SURVEY REPORT. iii. ALL TRANSACTIONS OF INWARD (RECEIPTS) AND OUTYWARD (ISSUES) OF GOLD ORNAMENTS ARE PROPERLY RECORDED IN GOLD ORNAMENTS STOCK REGISTER MAINTAINED IN COMPUTER MANUFACTURED GOLD ORNAMENTS RECEIVED FROM KARIGAR AND ISSUES BY WAY OF SALES PER SALES INVOICES ARE RECORDED IN COMPUTARISED STOCK BOOK. WE FURNISH BELOW DETAIL MOVEMENT OF STOCK OF GOLD ORNAMENTS DURING THE PERIOD FROM 01.04.2013 TO 21.05.2013 AS FOLLOWS. OPENING STOCK IN HAND AS ON 01.04.2013 3895.720 Gms. ADD : MANUFACTURED GOLD ITEM RECEIVED FROM KARIGAR DURING T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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