Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 799 - AT - Income TaxApplication of the provisions of section 145(3) - Reduction in the Gross Profit rate from 18.5% to 16% by CIT(A) - Addition on account of unexplained cash - Addition on account of unexplained stock - Held that:- It is undisputed fact that the assessee has been indulging in unaccounted sales/purchases. The major expenses on account of trading of fireworks have already been debited by the assessee in P&L account except unaccounted purchase. Therefore, in unaccounted purchase resultant to unaccounted sales, the assessee has more profitability. The learned counsel has not controverted the finding given by the learned CIT(A). In case of comparable Rajan fireworks and Emporium case, the G.P. shown by it @ 17% to 18%, who is dealing in wholesale/retail fireworks. Therefore, the learned CIT(A) has reasonable to apply 16% G.P. on recorded sales as well as unrecorded sales. Thus, we confirm the order of the learned CIT(A). Therefore, the revenue's appeal and assessee's C.O. on this issue are dismissed. Addition on account of unexplained cash - The assessee has already disclosed excess undisclosed income over undisclosed investment in the return itself. It is a fact that the assessee has admitted additional income on account of cash found during the course of search. The statement recorded U/s 133A of the Act has no evidentiary value as held by the Hon'ble Supreme Court but the statement recorded U/s 132(4) has evidentiary value, which is also rebuttable presumption as held by the Hon'ble Apex Court in various cases. It is fact that Shri Madan Mohan Gupta in question to answer No. 21 in statement U/s 133A dated 22/10/2008 had admitted that the cash of ₹ 20 lacs was found at residence, had disclosed additional income. The learned AR for the assessee's argument that the excess cash found during the course of search at residence was result of unaccounted sale made in preceding years. The learned CIT(A) also analysed the whole facts with reference to cash and unaccounted investment found and has given detailed findings on this issue, which has not been controverted by the learned CIT DR. Therefore, we confirm the order of the learned CIT(A). Addition on account of unexplained stock - The learned AR considered the reconciliation in his submission and excess stock has been calculated at ₹ 77,289/- in place of addition confirmed by the learned CIT(A) at ₹ 2,80,238/-. The facts and figure mentioned by the assessee are required to be verified from the record of the assessee and seized material, therefore, we set aside this issue to the Assessing Officer to re-verify these facts and figure reproduced above in conciliation of stock. Accordingly, this ground of appeal is set aside to the Assessing Officer. - Decided against the revenue.
|