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TMI Blog2023 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... les made out of books. 3. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 17,895/- by making disallowance of delayed payment of Provident Fund payments. 4. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 24,658/- on account of debit of cash discount pertaining to prior period without appreciating that such claim crystallized during the year only. The appellant craves permission to add, alter, amend or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal." Firstly we are taking ITA No. 1293/Ahd/2016 3. The assessee is engaged in the business of manufacturing cotton ginning and pressing mill under the name and style of Ganhesh Ginning Factory. The assessee firm filed return of income declaring loss of Rs. 48,69,036/- on 20.09.2011 under the head profit & gains of business or professions. The case was selected for scrutiny and first statutory notice under Section 143(2) was issued on 07.08.2012. During the year under assessment, survey under Section 133A of the Act was carried out at the business premises of the assessee at 27.01.2022. The investigation team / survey team found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R. further submitted that the working partner of the assessee has admitted the said difference and therefore, the Assessing Officer as well as CIT(A) has rightly taken cognizance of the same. The Ld. D.R. further submitted that the report of stock surveyor team was never disputed before the authorities. The Ld. D.R. further submitted that the CIT(A) has already observed that tax paid on excess stock. 8. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has not taken into account the conciliation statement which was filed before the authority. The assessee pointed out to the authorities that in view of existence of all the units in the common compound inter mingling of stock among the units was possible and the partner's statement cannot be the sole criteria for making addition to that extent. From the perusal of the records related to the reconciliation filed by the assessee it appears that the excess stock claimed by the Revenue / Assessing Officer is not properly verified. Therefore, it will be appropriate to remand back this issue to the file of the Assessing Officer for proper adjudication of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing provisions of section 145 of the Act. 2. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 1,40,72,777/- by estimating gross profit rate. 3. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 1,09,60,980/- on account of alleged unexplained credits/unaccounted sales noticed in the impounded material and not found recorded in the books of accounts. 4. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 77,86,000/- on account of alleged discrepancy in stock found on the date of survey on the basis of statement of director and without appreciation of facts brought on record. 5. The Ld. CIT(A) erred on facts and in law in not granting telescoping benefit among the additions made resulting into double and unwarranted additions in the hands of the appellant. The appellant craves permission to add, alter, amend or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal." 17. The assessee filed its return of income on 14.09.2011 declaring total income at Rs. 9,27,249/- and deemed total income of Rs. 20,43,828/- under Section 115JB of the Act. The survey under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has already followed the method of accounting which was continuously followed in the previous and subsequent years. In fact, inflation brokerage and transportation brokerage not claimed separately so there was no reopening made on earlier occasions. The comparable which was cited by the Assessing Officer were never confronted to the assessee. Thus, this needs verification and therefore, the entire issue is remanded back to the file of the Assessing Officer for proper adjudication after taking cognizance of all the evidences and adjudicate the case issue accordingly. Needless to say, the assessee be given opportunity of hearing by following principle of natural justice. Thus, Ground Nos. 1 & 2 are partly allowed for statistical purpose. 22. As regards Ground No. 3 related to addition of Rs. 1,09,60,980/- on account of unexplained credits / unaccounted sales noticed in the impounded material, the Ld. A.R. submitted that the same was not found recorded in the books of accounts as per the observation of the CIT(A), but the assessee has also offered Rs. 20,00,000/- which was not taken into account by the Assessing Officer as well as CIT(A). The valuation of sale was not at all proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A No. 1296/Ahd/2016 30. The grounds of appeal raised by the assessee in ITA No. 1296/Ahd/2016 for A.Y. 2011-12 read as under: "1. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 80,000/- u/s 68 for alleged unexplained credit in the name of Mehta Kantilal Nandalal. 2. The Ld. CIT(A) erred on facts and in law in confirming addition of Rs. 15,00,000/- on account of alleged understatement of net profit without finding any defect in the books. The appellant craves permission to add, alter, amend or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal." 31. The assessee is deriving salary income, business income from trading and manufacturing of cotton and cotton products in the name and style of Royal Cotton Company. Survey under Section 133A was carried out on 27.01.2011 at the business premises of the assessee. The Assessing Officer made addition on account of investment of income towards Rs. 25,87,040/-. The Assessing Officer also made addition of Rs. 1,93,950/- in respect of unaccounted / unexplained brokerage expenses. The Assessing Officer also further made addition of Rs. 80,00,000/- towards unexpl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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