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2022 (10) TMI 1096 - AT - Income TaxAdditions on account of difference in the closing stock of gold - gold found by the survey party in the course of survey action carried u/s 133A(1) - CIT-A deleted the addition - HELD THAT:- Assessee had discharged primary onus lying upon it by explaining the difference of stock as noted by the survey team and stock as per the books of account maintained by the assessee. AO had not done anything to verify the veracity of explanation offered by the assessee. We note that the AO was of the opinion that the explanation offered by the assessee cannot be believed and proceeded to make addition the alleged difference worked out by the survey team. Further, it is not the case of AO that the assessee failed to discharge the primary onus lying upon it by filing full details in support of its claim, therefore, in our opinion, without making any enquiries involving explanation and documentary evidences filed by the assessee, the AO cannot make any addition based on conjectures and assumptions as well as without bringing any conclusive evidence on record. Therefore, we find the survey team committed an error in adopting the production date and also the closing stock date which was followed by the AO is contrary to the evidences brought on record by the assessee. Therefore, we find the reasons recorded by the CIT(A) in holding that the AO conducted the assessment proceedings in a casual manner, is justified and the order of CIT(A) is fair and reasonable based on appreciation of material facts concerning the case of the assessee. Assessee offered additional income voluntarily for taxation in respect of value of purchase of gold to an extent of 4210 gram, sale of gold to an extent of 4210 gram and excess stock of ornaments 917 gram totaling to Rs.2,19,48,940/- but we find no discussion whatsoever made by the AO regarding the said details offered by the assessee except proceeding to make addition on account of stock difference found by the survey team regarding gold an extent of 193.157 Kgs. We find force in the arguments of ld. AR the addition made by the AO in respect of stock different at 193.157 Kgs is not justified irrespective of having every details along with the submissions with clear evidences vide Schedule I to VIII on record, the AO without considering the same added the same to the total income of the assessee. Therefore, we find no infirmity in the order of CIT(A) and we agree with the final conclusion arrived by the CIT(A). We agree with the conclusion arrived by the CIT(A) in deleting the addition and in directing the AO to confirm the additional income voluntarily offered by the assessee - Thus, ground Nos. 1 to 3 covering the issue raised by the appellant-revenue are dismissed.
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