TMI Blog2017 (12) TMI 1523X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of amount deposited in the saving bank account of Shri Nisar Y. Mulla. Since, the assessee has failed to explain the amount deposited in the saving bank account of Shri Nisar Y. Mulla, addition of ₹ 5,55,549/- is sustained. Accordingly, ground No. 1 raised in concise grounds of appeal by assessee is dismissed. Addition on account of excess stock and excess cash found during survey - Held that:- The assessee explained that at the time of survey the books of account were incomplete and certain entries were yet to be made in cash book. The assessee updated the books after survey. After completing the books and reconciliation it was found that there is no difference in cash. It is an undisputed fact that the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the business of trading in Kirana and Bhusar items. The partnership firm consists of three partners viz. Shri Yusuf Nijamsaheb Mulla, Shri Hidayat Yusuf Mulla and Shri Mehboob Yusuf Mulla. A survey action u/s. 133A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) was carried out at the business premises of assessee on 09th 10th February, 2009. During the course of survey it was found that the assessee is not maintaining stock register, daily wages register, etc. During survey excess stock and excess cash was found. Statement of Shri Hidayat Yusuf Mulla one of the partners was recorded on 09-02-2009. Shri Hidayat Yusuf Mulla in his statement made disclosure on account of : i. Differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax Vs. S. Khader Khan Son reported as 352 ITR 480. The ld. AR submitted that at the time of survey books of account were not ready, therefore, were not available for inspection. However, the books were produced at the time of assessment proceedings. The Assessing Officer neither rejected the books of assessee nor pointed any defect in the books. The ld. AR referring to the statement of Shri Hidayat Yusuf Mulla submitted that deceptive questions were asked from the partner of the assessee firm. Some of the questions were formulated in such a complex manner that Shri Hidayat Yusuf Mulla got confused and could not understand the question itself. However, he answered the questions to the best of his ability. Due to lack of understa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Modi representing the Department vehemently defended the findings of Commissioner of Income Tax (Appeals) in confirming the additions. The ld. DR submitted that the assessee retracted from the statement after two months. The explanation furnished by the assessee in reconciliation of the stock and cash is nothing but an afterthought. The assessee produced books for the first time before the Assessing Officer on 26-12-2011 i.e. just before the time barring of assessment. There was no occasion/time for the Assessing Officer to verify the books. The ld. DR pointed that the assessee in his books has disclosed sales of ₹ 68,67,872/- from 01-04-2008 to 08-02-2009 and thereafter, from the date of survey i.e. from 09-02-2009 to 31-03-2009 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that Nisar Y. Mulla is working with the firm on monthly salary of ₹ 1500/-. In his statement he never mentioned that Nisar Y. Mulla is having any independent business. 5. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. The additions has been made in respect of amount deposited in the name of Nisar Y. Mulla in his saving bank account ₹ 5,55,549/-, excess stock found ₹ 16,49,960/- and excess cash found ₹ 6,77,780/-. 6. The first ground in appeal is in respect of unexplained cash deposits to the tune of ₹ 5,55,549/- in the saving bank account of Shri Nisar Y. Mulla. It has been contended that Shri Nisar Y. Mulla is having h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ₹ 16,49,960/- and excess cash found during survey ₹ 6,77,780/-, respectively are taken up together for adjudication. During the course of survey ₹ 7,39,741/- cash was found, whereas as per cash book, the cash balance as on date of survey was ₹ 69,961/-. Excess cash ₹ 6,77,780/- was added. The assessee explained that at the time of survey the books of account were incomplete and certain entries were yet to be made in cash book. The assessee updated the books after survey. After completing the books and reconciliation it was found that there is no difference in cash. It is an undisputed fact that the Assessing Officer has not rejected books of assessee before making the additions. The assessee purportedly fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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