Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 256 - AT - Income TaxAddition made on account of excess stock & excess cash - CIT(A) restricted the addition - Held that:- The case of the assessee is entirely based upon provisional trading account prepared at the time of survey showing the figure of purchase and sales differently as against the figures pointed out by the assessee. Also that the assessee prepared the working of the purchase and sales figures on the basis of the impounded bills and value of the sale was arrived at ₹ 67,58,352/- and the purchases have been found at ₹ 71,79,376/- as against the sales and purchases of ₹ 74,20,097/- and ₹ 49,00,581/- as per the provisional trading account. The correct figures pointed out by the assessee of sales and purchases were based upon the impounded documents. As the CIT(A) verified all the figures at the appellate stage in the presence of the AO and after verification of purchase and sales found that correct figures have been pointed out by the assessee. Thus, the sole basis of making addition, i.e., provisional trading account was not having correct figures of purchase and sales. Whatever items have been declared by the assessee on account of excess stock have been given benefit correctly by the CIT(A). Since the figures of the sales and purchases were based on factual figures, therefore, it is a case of factual mistake committed by the Survey Party as well as by the AO, which has been rightly corrected by CIT(A). Thus, the assessee on the basis of seized material itself has been able to show that the admission made at the time of survey surrendering the additional income on account of excess stock was not correct and did not show correct state of facts. Therefore, no addition could be made against the assessee on the basis of mere admission according to the facts and circumstances of this case - in favour of assessee.
|