9911796707
TMI Blog2000 (12) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... stock as income for the asst. yr. 1991-92. A letter was issued to the assessee bringing out the above facts. It was claimed that the stock found during the survey included goods that arrived on the day of survey. In para 4 of the assessment order, the AO has made note of the stock as per stock register, stock found on physical verification, excess found and receipts or arrivals. When confronted with the above excess stock, the authorised representative of the assessee and also the partner, agree for the addition as income for the assessment year under appeal and the AO, accordingly, completed the assessment adding the sum of Rs. 1,05,400. 3. Challenging the above addition the assessee went in appeal to the CIT(A). The CIT(A) confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under s. 143(1)(a). The learned counsel for the assessee contended that the addition is totally unwarranted and is made without any justification. It is pointed out that return has been filed by the assessee. The assessee also maintains a register of stock. It was pointed out that the unexplained stock found at the time of survey operation represented additional stock which had arrived during the day of survey which had not been taken into account in the stock register. It is not correct to say that no stock arrived on the day of survey. It is also contended that the partner Shri Gangadhar Mathpati only knew the local language and is not at all conversant with English except that he can sign in English. The statement was recorded in Engli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addressed by the AO to the assessee bringing to the notice of the assessee the different stand taken by the managing partner at the time of survey and the discussion with the AO. The learned Departmental Representative also invited our attention to p. 6 of the paper book, especially the answer given by the managing partner to question No. 5, which is to the following effect: "I admit that the above stock belongs to us. I am not in the position to give the specific reason for the difference and I agree to offer the value of the said stock to the extent of Rs. 1,05,400 for income-tax along with the income of the current financial year. I also agree to pay the advance tax over the said amount along with the regular income." `The learned D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty on the admission by the assessee that certain amounts added to his income constituted his concealed income is valid. It was also held therein that admitted facts need not be proved. It is also the case of the assessee that the managing partner did not know English and the statement having been recorded in English the admission so made by him was done not knowing what he was admitting. We find this hard to believe, as the assessee wants us to believe certain statements of the managing partner and, at the same time, not to believe certain statements which are not in favour of the assessee. The assessee is a firm and bereft of the partners, the firm has no locus standi. Every statement of a partner is to be taken as having been made on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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