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2017 (4) TMI 166 - ITAT PATNAAddition on account of undisclosed stocks - survey operation was conducted at the business premises of the assessee - Held that:- A reading of the material shows that the purchase bills and transport receipts as well as form D-VIII are drawn on the name of the contractors and we find any amount of force in the submission the learned authorised representative that these bills and the other bills cannot be taken as fabricated. All these bills are dated before March 29, 2010 before a close proximity of time to the date of survey, lending support to the contention of the authorised representative for the manufacturer kept these materials in the possession of the assessee in view of the arrangement between the assessee, manufacturer and the contractors. There is nothing improbable in this proposition put forth before us and merely because some suspicion occurred to the mind of the Assessing Officer such suspicion cannot prevail over broad probabilities. Source and destination of the payments are verifiable and the ledger book, which are not in the custody and control of either assessee or contractor but in the custody and the maintenance of the manufacturers are available on record for verification. In these circumstances the authorities below should have noticed that all the bills are excisable bills. There is no finding that these bills are fabricated. Suspicion, however grave it is, cannot take the place of legal evidence or proof and in the absence of any tangible evidence in the possession of the authorities below and without giving a finding that the document produced by the assessee or the contractors or the manufacturer are false and fabricated once, in addition made on suspicion cannot be sustained. In respect of sprinklers the bills issued by the manufacturer the assessee produced the material to show that one Satyam Enterprises is the owner thereof t is submitted before us that the owner of Satyam Enterprises is the own brothers of the assessee and conducting the business in the same premises of old house in which the assessee is conducting the business as such it is natural that the stock to the business of Satyam Enterprises could also be found in the same premises. There is nothing unusual in this submission and the documents that are produced by way of paper books on pages 87 to 94, which shall include the purchase bills and transportation receipts, established the fact that the ownership of such property is vested in Satyam Enterprises but not in the assessee. The value of this stock cannot be included in the stock of the assessee as undisclosed stock and no additions could be made on this account. - Decided in favour of assessee
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