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TMI Blog2021 (3) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... ") dated 29/12/2017 relevant to Assessment Year (AY) 2015-16. 2. The grounds of appeal raised by the Assessee read as under:- 1. On the facts and circumstances of the cases as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has erred in confirming addition of Rs. 1,27,70,341/- on account of undisclosed stock. 2. On the facts and circumstances of the cases as well as law on the subject, the learned Commissioner of Income-tax (Appeals) ahs erred in making disallowance of Rs. 1,96,677/- in respect of unaccounted purchases. 3. Facts of the case are that a survey u/s.133A of the Act had been conducted in the case of assessee on 19/11/2014 during which the summons u/s.131 of the Act had been issued to the two pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Smt. Bhavanaben S. Soni (wife of son of partner Shri Krishnalal B.Soni), Smt. Purnimaben G.Soni and Smt. Sangitaben V.Soni, the wives of two partners. It has also been contended in the letter dated 26/12/2014 that 14 persons have given the gold to three lady members who are also engaged in the same line of business, i.e. repairing of gold jewellery, manufacturing the jewellery or to make jewellery from raw gold as per orders of the customers and the business activities have been carried out at the business premises of the assessee-firm. The Ld.AO did not agree with the contentions of the assessee and stated that during the survey Managing Partner of the firm M/s. Soni Lallubhai Motichand was given a willful and the same amounts to an after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, her copy of the Income Tax Return and books of accounts are at page Nos.121 to 126 and gold register in reference to the gold received from two parties is at page No.127 as well as invoices issued are at page Nos.128 & 129 and labour charge receipt from list at page No.130. 6.2. So far as Bhavnaben Sanjaykumar Soni is concerned, wherein the labour charge income is Rs. 3,40,114/- and the register maintained for three persons is at page No.140 and the invoices issued is at page Nos.141 to 143 as well as individual labour charge income is as per page No.144 and past year Financial Year 2010-11 similarly labour charge receipt is as per page No.146 of the paper-book and the invoices issued in past year is as per page No.147 of the paper-boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey made certain references against the assessee in that case, assessee should have been given chance to cross-examine them as held in the case of Andaman Timber Industries (SC). 6.6. It is noticed that ld.AO asked assessee to file books of accounts, i.e. pre and post survey and several enquiries were made pertaining to books of accounts and same were duly complied with but books of accounts were not rejected by the Assessing Officer as held in the case of Sayqul Islam vs. ITO (2020) 118 taxmann.com 347 (Gauhati Tribunal) where assessee's turnover exceeded Rs. 1 crore but it failed to get accounts audited under section 44AB, Assessing Officer could make addition to assessee's income on estimation basis under section 44AD only after rejectin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties were rejected by the lower authorities on the basis of treating those affidavits as self-serving documents but documents submitted by the persons who were doing business from the same premises were not thoroughly examined and their Income Tax Returns were not considered by the lower authorities, wherein all the details with regard to their income were mentioned and no material was provided, on that basis addition was made and assessee was not allowed to cross-examine whose statements were relied for making addition in the hands of the assessee. In our considered opinion, whatever material or statement had been basis of the addition that should have been made available to the assessee and ought to have given opportunity to cross ..... X X X X Extracts X X X X X X X X Extracts X X X X
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