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2013 (6) TMI 158 - AT - Income TaxAddition u/s 69A - Levy of penalty u/s 271(1)(c) - difference in stock - addition made in the assessment proceedings is on account of the addition agreed upon by the assessees before the Central Excise authority under the KVSS scheme. As per revenue the search was carried out by the Central Excise Authorities for three days and they have listed out in the panchanama the value of excess goods referable to finished and semi-finished excisable goods and at the same time listed out the shortage of goods referable to raw material which in itself proves that the assessees have not maintained books properly, which resulted in additions made by the Central Excise Authorities and for the same reason the AO made the additions. Held that:- According to the AO the difference between the excess stock and closing stock would reveal that the assessees purchased stock using unexplained money and therefore the addition is maintainable u/s 69A of the Act. The assessees herein could not point out that the unexplained stock found by the Central Excise Authorities was merely on "eye sight basis". The search proceedings continued for three days and the Panchanama was written in presence of the Directors of the respective companies. If burning losses, etc. were not properly taken into consideration that issue could have been raised before the Central Excise Authorities at the time of preparing the Panchanama or immediately thereafter. No such efforts appear to have been made by the assessees herein. Even before us no material, whatsoever, was placed to indicate that the addition made and ultimately confirmed by the AO is not in accordance with law. Therefore, the assessees' explanation is not substantiated with any material and hence there is no infirmity in the orders passed by the learned CIT(A). - Levy of penalty confirmed - Decided against the assessee.
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