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2014 (8) TMI 1013 - ITAT CHANDIGARHAssessment u/s 153A - unexplained expenditure under the head “wages” - Held that:- The conclusion of the authorities below was that the assessee had not booked the complete expenditure on wages in its books of account as the numbers of the workers found during the course of survey were more than the list of workers available in the books of account. First of all the said survey was conducted at the premises of the assessee on 9.9.2004 when the said list was prepared. The conclusion of the said survey could not be applied while completing the assessment pursuant to search carried out at the premises of the assessee under section 132 of the Act. Secondly, there was no merit in the said addition being made in the hands of the assessee as the explanation of the assessee that the workers of the two concerns were totally considered in the list of workers prepared by the survey team for the assessee firm, cannot be ignored. The said list of 59 workers was prepared on 9.9.2004 and the plea of the assessee was that the said 59 workers as on the date of survey belonged to the assessee and its sister concern. The requisite list of workers employed with either of the concerns were filed on record. Merely because the said statement was confronted to one of the partners who had signed the list does not establish that the workers belonged to the firm in which he was a partner i.e. the assessee firm before us. In the absence of any concrete evidence found, we find no merit in the orders of the authorities below and no addition is warranted in the hands of the assessee on the basis of said list prepared by the survey team, where the assessee had clearly explained its case that the said total number of workers belonged to two concerns and not to the assessee itself. In any case, the additions in the hands of the assessee for the years under consideration have been made on pure estimation as no evidence of excess workers was found in the years under appeal. - Decided in favour of assessee. Sales made outside the books of account - Held that:- Addition is based on the documents seized from the residence of the partners of the assessee. The said documents reflected the quantity of goods sold and the persons to whom sold date-wise and the assessee had admitted having made kabari sales of waste material. In view thereof, the we uphold the addition of ₹ 4,55,185/- on account of seized documents. - Decided against assessee Estimated profit of short stock found on the date of search - Held that:- As the addition on account of sale depicted in the seized documents being outside the books of account and on account of the explanation given by the assessee already upheld that the discrepancy stands reconciled on account of the GP rate to be applied and other discrepancies explained by the assessee, there is no merit in any further addition. Another aspect to be kept in mind is that the information gathered by the Income Tax Department during the search proceedings were forwarded to the Excise Department, who in turn visited the premises of the assessee and found no discrepancy in the stock. In the totality of the facts and circumstances, we find no merit in the addition made on account of estimated profit of short stock found on the date of search. - Decided in favour of assessee
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