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2017 (7) TMI 201 - AT - Income TaxAddition on account of difference in stock - existence of any pressure or coercion at the time of making surrender - Held that:- No statement or affidavit of panch (witness) have been filed in support of pressure having been brought upon the assessee. In short, no evidence of existence of any pressure or coercion at the time of making surrender has been brought on record. The contention of the assessee that the surrender was made under pressure appears to be a mere statement with no basis at all. Once the statement has been given making a surrender, the presumption is that it has been given voluntarily without any pressure or coercion and while stating otherwise for retracting the same, the onus is on the assessee to prove so. Thus Admission made by the assessee, surrendering the excess stock, cannot be rejected as admissible evidence on this ground. Revenue has given no reason for adopting the GP rate of the immediately preceding year only i.e. 26% and we find no reason to adopt the same particularly considering the fact that the average GP rate of the preceding years comes to 20.48% and further GP rate accepted in this year is undeniably 22%. In such circumstances, we hold, it would be fair and reasonable to adopt the GP rate of the current year i.e. 22% for the purpose of calculating stock as per Books on the date of search. The retraction of the assessee is to this extent, therefore, accepted. The Assessing Officer is therefore directed to compute the difference in stock found on the date of search by calculating the stock as per Books by applying GP rate of 22% to the trading results of the assessee as on the date of search. The Gross Profit on the stock found short if any is also directed to be calculated after applying GP rate of 22% and addition is directed to be upheld of the same.
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