9911796707
TMI Blog2022 (4) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... -after referred to as "the Act") relevant to the Assessment Year 2010-11. 2. The assessee has raised the following grounds of appeal: 1. In law and in the facts and circumstances of the appellant's case, the Ld. CIT(A) has grossly erred in upholding the addition of Rs. 33,50,310/-being gross profit on deficit of stock without appreciating the disclosure of Rs. 2 crores made for the year under consideration vide letter addressed to ADIT(investigation), Mehsana covering the discrepancy pertaining to alleged stock deficiency. 2. In law and in the facts and circumstances of the appellant's case, the Ld. CIT(A) has erred in upholding the addition without appreciating the fact that the alleged excess stock as per the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ventually deserves to be deleted. 3. The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. 3. The only effective ground of appeal raised by the assessee is that the learned CIT (A) erred in confirming the addition made by the AO for Rs. 33,50,310/- representing the gross profit on the deficit of stock. 4. The facts in brief are that the assessee in the present case is a private limited company and engaged in the business of manufacturing of cold process castor oil and other byproducts. There was a survey operation under section 133A of the Act on the premises of the assessee and its associate namely Banpal Agrotech Private Ltd. Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources and made the sales which was not recorded in the books of accounts. In such a situation, there will be huge crunch of cash for the proper functioning of the business. In the case of unaccounted sales, it is assumed that the assessee has made unaccounted purchases out of the proceeds of unaccounted sales. Thus the AO rejected the contention of the assessee and confirmed the addition of Rs. 33,50,310/- by adding to the total income of the assessee. 5. Aggrieved assessee preferred an appeal to the learned CIT-A 6. The assessee before the learned CIT (A) submitted that the amount of income of Rs. 2 crores which was offered to tax was based on the peak application. The source of such application was the unaccounted sales only. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso observed as under: The Appellant has also raised additional pleas that excess stock found during the course of survey is already considered in subsequent sale or part of closing stock hence no addition pertaining to gross profit on above referred deficit stock can be made. This argument of Appellant cannot be accepted on the ground that there was specific discrepancy found during the course of survey and same was admitted by Director of Appellant. The deficiency in stock has to be considered on specific date and subsequent transactions cannot have effect that there was no discrepancy in stock unless Appellant produces material and cognent evidences to substantiate its claim. The Appellant has made general statement and not proved that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... troversy that arises before us for adjudication whether the disclosure made by the assessee during the survey operation for an amount of Rs. 2 crores includes the amount of gross profit on the unaccounted sales. Both the authorities below have given concurrent finding that addition of Rs. 2 crores is distinct and independent to the amount of gross profit of Rs. 33,50,310/- on the unaccounted sales which was also agreed by the assessee during the survey operation. Admittedly, the appeal before us has been filed by the assessee and therefore the onus lies upon the assessee to establish that the amount of gross profit of Rs. 33,50,310/- is part and parcel of the disclosure made by the assessee for Rs. 2 crores based on the documentary evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial by way of a Kuchcha noting and jotting was shown to me and was stated by the officers to have been found from our premises and my explanation was sought for. I had at that time itself stated that the same did not GBP belong to the group. In order not to raise any further issue on this subject and further to buy peace and avoid long drawn litigation in this connection as, we may not be able to get confirmations to the fullest satisfaction of the Department in connection with the seized material I, as Chairman and Managing Director of the group companies hereby state that the peak which may be worked out on the basis of such seized material which can be considered as applications and accordingly such peak is being offered to tax. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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