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2015 (6) TMI 2 - AT - Income TaxUndisclosed investment in stock - CIT(A) restricting the addition - Held that:- From the working submitted by assessee it appears, assessee has arrived at the actual physical stock on the basis of the purchase invoices. However, since the said working was not furnished before AO and was for the first time furnished before ld. CIT(A), for affording fair opportunity to the department, we are inclined to remit the matter back to the file of AO to verify assessee’s claim of actual cost price of physical stock available on the date of search on the basis of these workings vis-à-vis the purchase invoices, which are part of the seized material and thereafter make addition, if any, on account of excess stock. As far as adoption of GP rate is concerned, we are of the view that if in the impugned AY assessee has shown a GP of 30%, then, the same has to be applied for working out the value of stock. With the aforesaid observations, the matter is remitted back to the file of the AO for necessary verification and deciding the issue after due opportunity of being heard to assessee. - Decided in favour of revenue for statistical purposes. Unexplained cash found at the time of search - CIT(A) deleted the addition - Held that:- As seen from the facts on record, neither at the time of search operation nor during the assessment proceeding, assessee has offered any reasonable explanation with regard to the source of cash found at the time of search. However, before the ld. CIT(A), assessee pleaded that cash found represents sales effected till the date of search. When assessee does not maintain any cash book, onus is on assessee to establish link between the cash found and receipts from sales by producing corroborative evidence. Thus remit the matter back to the file of AO for deciding afresh - Decided in favour of revenue for statistical purposes.
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