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TMI Blog2021 (9) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... rought to tax at the rate of 30% under section 115BBE - The matter relating to excess stock found during the course of survey and taxability thereof has been specifically discussed in the body of the assessment order. Thus, it cannot be said that there is failure on part of the AO to examine the same. Excess stock of Gold Jewellery and silver jewellery - Figures relates to the stock which was recorded in the books of accounts as on the date of the survey as apparent from the trading account for the pre survey period which is also reproduced by the ld PCIT in the impugned order and not the figure of excess stock found during the course of survey. The excess stock which was found during the course of survey and the stock of gold and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,00,886/- was found at the business premises of the assessee. However, in the trading account, the assessee has enhanced the gold jewelry and silver jewelry by ₹ 56,85,200/- and ₹ 10,72,912/-, respectively. The total enhancement made by the assessee comes to ₹ 67,58,112/-. In this way, the assessee has enhance the stock of gold and silver jewelry in the trading amount, in excess by sum of ₹ 33,57,226/-. The AO failed to examine and verify the reason of enhancement in the trading amount. The AO is directed to examine and verify the documents, stock inventory and statements of the assessee recorded during the course of survey, gold and silver jewelry surrendered during the course of survey vis-a-vis gold and sil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the date of the survey as apparent from the trading account for the pre survey period. It was accordingly submitted that the excess stock which was found during the course of survey was ₹ 67,58,112/- and the stock of gold and silver in the trading account has been corresponding increased in the trading account by the assessee and the same has been duly examined by the Assessing Officer. It was accordingly submitted that the matter was duly examined by the Assessing Officer and the order so passed by the Assessing Officer cannot be held as erroneous and prejudicial to the interest of the Revenue. 4. Per contra, ld. DR relied on the findings of the ld. Pr. CIT and our reference was drawn to his findings which we have already take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961. The surrender was made in this case by the assessee in view of the discrepancies in the Difference in cash physically found and as per books of account, On account of excess stock found, On account of unexplained advances and Loose paper which is admitted in the statement recorded during the survey and affidavit duly signed by the assessee filed letter. The assessee has offered the income for taxation as the transactions recorded in the loose papers were not recorded in the books and stands unexplained. Since the assessee has failed to explain the source of income disclosed on the basis of incriminating documents/papers, these transactions come in the ambit of section 69/69A/69B/69C/69D of the Income tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been specifically discussed in the body of the assessment order. Thus, it cannot be said that there is failure on part of the Assessing officer to examine the same. 7. Regarding figures of excess stock of Gold Jewellery of ₹ 24,82,886/- and silver jewellery of ₹ 9,18,000/- aggregating to ₹ 34,00,886/- as pointed out by the ld PCIT, it is noted that the said figures relates to the stock which was recorded in the books of accounts as on the date of the survey as apparent from the trading account for the pre survey period which is also reproduced by the ld PCIT in the impugned order and not the figure of excess stock found during the course of survey. The excess stock which was found during the course of survey was &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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