Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 891 - ITAT KOLKATAAddition under section 69A - verification during the course of survey under section 133A - CIT(A) deleted the addition - Held that:- In the case of the assessee during the course of survey operations, certain shortages were noticed pertained to cash in hand, gold ornaments, diamond items and silver items. Since shortages have been noticed as compared to books it cannot be said that any undisclosed investment/money was made by the assessee. Thus we agree with the learned Commissioner of Income-tax (Appeals) that no addition can be made as undisclosed investment made by the assessee. In such circumstances addition under section 69A of the Income-tax Act is not warranted. As regards cash shortages, shortage has been found as compared to books. The cash might have been used for making unaccounted purchases or other purposes for which no cogent material is available. In such circumstances merely on conjectures or surmises addition under section 69A of the Act cannot be made. As regards shortage in gold ornaments 22 carat and the gold ornament that is said to have given to sister concerns, addition to the extent of ₹ 17,27,945 and ₹ 5,13,112 respectively had been made. In this regard we note that the shortage in the above gold ornaments cannot be treated as undisclosed investment and the shortage can at best be treated as undisclosed sales. In such circumstances only the profit element arising out of the said sale can be added in the hands of the assessee and not the entire undisclosed sales. In this regard the assessee has offered an addition of ₹ 14 lakhs. The learned Commissioner of Income-tax (Appeals) has accepted the same as sufficient. We find ourselves in agreement with the finding of the learned Commissioner of Income-tax (Appeals) that the offer made by the assessee in this regard suffice the ends of justice. Addition for shortage in case Gold ornaments-18 carat-addition made for shortage- ₹ 2,78,493, Diamond items-additions made ₹ 1,993 and Silver items-additions made ₹ 95,267. We find that the above shortages can at best be treated as undisclosed sales. In such circumstances the entire amount cannot be added. In our considered opinion, an estimated addition of 10 percent. profit on the above sales would be sufficient and would serve the ends of justice. Accordingly we confirm the order of the learned Commissioner of Income- tax (Appeals) with only modification that 10 per cent profit may be added for the items mentioned above. - Decided partly in favour of revenue.
|