TMI Blog2001 (11) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... ,46,552 as a result of survey conducted on the premises of the assessee. Narrating the facts, he contended that a survey was carried out at the premises of the assessee on 26-10-1988 wherein it was found that the stock of the assessee was less as compared with the stock as per books to the tune of Rs. 2,97,050. He contended that physically counted stock was arrived at Rs. 17,77,161 whereas as per books the stock of the assessee was Rs. 20,74,211. When the assessee was asked to explain the discrepancy, the answer of the assessee was that he was unable to explain the difference. However, the same was offered for taxation for the year under consideration. Referring to question No. 19 and answer thereto, he contended that it speaks as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same was shown as sale. He contended that if the addition made by the Assessing Officer is considered for arriving at gross profit the gross profit as assessed will come to 20.94 per cent. The kind of profit arrived at after adding the sum by the Assessing Officer was never accrued to the assessee as the gross profit in the preceding years ranges between 14 per cent to 17 per cent and it never crossed 17 per cent. He further placed reliance on the decision of Tribunal Pune Bench in the case of Janta Tiles v. Asstt. CIT [2000] 66 TTJ (Pune) 695. In this case, the stock found at the time of search was less than the stock as per the books. Thus, it was found that difference of Rs. 1,96,924 represented the suppressed sale. If the Tradi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions. It is undisputed that the discrepancy found at the time of survey was in respect of stock which was found less by an amount of Rs. 2,97,050 as compared with the stock calculated as per books of account. Thus, it is clear that the less found stock represented suppressed sales. Keeping in view the decision of Pune Bench cited by the learned counsel where stock was found less on physical verification as compared to the stock as per books, the possible addition could be only in respect of gross profit arising out of suppressed sale. The Trading Account placed at page 3 of paperbook by the assessee clearly shows that the amount for which stock was found less at the time of survey has been credited in the Trading Account and the gross profi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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