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TMI Blog2020 (7) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... e declaration, there are nowhere in the statements recorded during the course of search, any other declaration by the partners. As noted from the order of both the authorities below that they have made additions for the financial year 2012-2013 relevant to assessment year 2013-2014. Once the statements have been accepted by the survey team the tax should be calculated by them for the relevant years accepted by the assessee. In view of the above findings noted by us, it should be taxed in the assessment year 2012-2013. Accordingly, we quash the order of both the authorities below and delete the entire addition made by the AO. Cash balance found in the cash box - As decided the entire issue that declaration should be added in the assessment year 2012-2013, therefore, there is no question for deciding this issue again because the amount in question as stated in this ground is included in the entire amount of declaration made by the partners. Appeal of assessee is allowed. - ITA No.394/CTK/2018 - - - Dated:- 10-7-2020 - Shri C.M. Garg, JM And Shri L.P. Sahu, AM For the Assessee : Shri P.K.Mishra, Advocate For the Revenue : Shri Subhro Das, DR ORDER PER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of ₹ 40 lakhs in four instalments. Later on he distracted from his commitment to pay self-assessment tax for the financial year 2011-2012 of ₹ 40,00,000/- in four instalments. Accordingly, the AO added the same into total income of the assessee for the financial year 2012-2013 relevant to assessment year 2013- 2014 to the tune of ₹ 1,30,26,864/- under the head stock discrepancy after observing as under :- However, the assessee firm distracted from his commitment and did not pay any self- assessment tax on undisclosed income of ₹ 1,30,26,864/- rather the assessee paid total advance tax of ₹ 4,00,000/- (₹ 1,50,000/- on 08.05.2012, ₹ 1,50,000/- on 14.05.2012 ₹ 1,00,000/- on 30.04.2012) for the assessment year 2013-14 instead of self-assessment tax for the A/Y 2012-13. As the assessee has distracted from his commitment to pay the S.A. tax for the F/Y 2011-12, and the survey was conducted during the financial year 2012-13, therefore the stock discrepancies was considered for the assessment year 2013-14. During the course of assessment proceedings the assessee firm did not produce stock register or reconcile the stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vey was conducted on 26.04.2012, therefore, the AO has correctly assessed in the impugned assessment year i.e. 2013-2014. He also submitted that the assessee distracted from his commitment made during the course of survey proceedings conducted at the partner s firm. It was also contended by ld. DR that during the survey proceedings the assessee accepted that he has not maintained stock registers for the quantity of goods purchased and sold. Therefore, the ld. DR submitted that the CIT(A) has correctly computed the addition made by the AO. 7. After considering the submissions of both the parties and perusing the entire material available on record as well as the orders of both the authorities below, it is clear from the records that the survey was conducted at the business premises of the assessee and some discrepancies were noted which were offered for taxation by the partner firm for the financial year 2011-2012 and the assessee had also given undertaking to the revenue authorities that he will pay self-assessment tax of ₹ 10,00,000/- each in four instalments but he did not pay. Therefore, the AO treated it as income for the assessment year 2013-2014 because the survey wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Unexplained cash ₹ 73.031/- Unexplained income ₹ 1,30, 26,864/- Further, I also hereby undertake to pay the self tax liability on the above undisclosed income of ₹ 1,30,26,864/- in 4 installments @ 10,00,000/- on 27.04.2012 each on 01.05.2012, 17.05.2012 and 31.05.2012 respectively for the assessment year-2012-13. Further the statement of Shri Deepak Kumar Rana is as under :- Q.31 Do you want to disclose anything? Ans. Since one of our partner Sri Laxmi Narayan Rana has already disclosed unexplained income of ₹ 1,30,26,864/-, I am also agreed with the statement of Sri Laxmi Narayan Rana. I also undertake to pay self assessment tax liability on the above undisclosed income of ₹ 1,30,26,864/- in four installments @10,00,000/- on 27-4-2012 and ₹ 10 lakhs each on 01-5-12, 17-5-12 31-5-12 respectively for the Asstt. Year 2012-13 on account of firm M/s Laxmi Narayan Jewellery. Q.32 Do you want to say anything else? Ans. As stated earlier, I hereby disclose unaccounted income of the firm at ₹ 1,30,26,864/- for A.Y.2012-13 and accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, M/s Laxminarayan Jewellery, Vivekananda Marg, Balasore. In both the statements the total discrepancy in stock declared of ₹ 1,30,26,864/-, which are evident from the para No.6 of Annexure-4 filed in paper book at pages 42 43 and Question Nos.31 32 in Annexure-5 at page 50 of the paper book. The total declaration made by them is ₹ 1,30,26,864/- only for the assessment year 2012-2013 in which they have undertaken payment of self-assessment tax of ₹ 40 lakhs in four installments. Except the above declaration, there are nowhere in the statements recorded during the course of search, any other declaration by the partners. We noted from the order of both the authorities below that they have made additions for the financial year 2012-2013 relevant to assessment year 2013-2014. Once the statements have been accepted by the survey team the tax should be calculated by them for the relevant years accepted by the assessee. In view of the above findings noted by us, it should be taxed in the assessment year 2012-2013. Accordingly, we quash the order of both the authorities below and delete the entire addition made by the AO. 10. In regard to issue of cash balance fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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