TMI Blog2012 (11) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... he has earned gross profit for the period 1.4.98 to 11.12.98 amounting to Rs. 1875712/- Assessee has further suffered gross loss for the period 12.12.98 to 31.3.1999 amounting to Rs. 385193/-. As a result of the above, the gross profit during the entire period came to Rs. 1490519/-. This aspect of the assessee, suffering of loss during a part of the financial year has not been discussed and examined by the authorities below. Therefore, matter is remitted to the file of the AO - Appeal of assessee allowed for statistical purposes. - I.T.A. No. 2966/Del/2003 - - - Dated:- 20-7-2012 - SHRI R.P. TOLANI, AND SHRI SHAMIM YAHYA, JJ. Assessee by : Sh. S.B. GUPTA, ADV. Department by : S h. J.S. AHLAWAT, Sr. D.R. ORDER PER SHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was put to him. As per the said question, the assessee was told that the stock valuing Rs. 38,33,000/- had been found at various places during the course of survey, whereas, as per the trading account, the stock shown was of Rs. 24,35,000/- only and when he was asked to explain the difference, he could not give any satisfactory explanation and surrendered Rs. 14 lacs, being the difference in the excess stock found and the stock as per his trading account. Ld. Commissioner of Income Tax (A) further observed that as per the details stock found at the time of survey at various places was as under:- Stock found at godown (Village Mandapur) Annexure-A Rs. 13,99,125/- Stock found at M/s Arora Spinning (P) Ltd. Annex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in appeal before us. 6. We have heard the rival contentions in light of the material produced and precedent relied upon. We find that ld. Counsel of the assessee had submitted that assessee has given detailed explanation before the lower authorities as to how Rs. 14 lacs was determined. The same is as under:- How the sum of Rs. 14 lacs was determined. At the time of survey a trading account was prepared by applying the earlier years G.P. rate of 4.29% to the total sales of Rs. 1,10,68,363/- as under:- Opening Stock 24,21,422 Sales 1,10,68,363 Purchases Closing stock 24,35,000 Raw wool 83,00,231 Yarn 97,272 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss profit a) Gross profit as per the theoretical trading Account prepared at the time of survey 4,75,712 b) Addition agreed to at the time of survey 14,00,000 Gross profit as on 11.12.98 after including the sum of Rs. 14,00,000/- 18,75,000 ii) Stock position as on 11.12.98 a) Stock as per theoretical account 24,35,000 b) Stock declared 14,00,000 38,35,000 Subsequent statement a/c for the period 12.12.98 to 31.3.99 was prepared by taking the opening stock at Rs. 38,35,000/- and the position of the trading a/c is as under:- E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported the order of the lower authorites below. 6.3 We have carefully considered the submissions and perused the records. We find that as per the submission of the assessee in the statement above, the assessee has claimed that the total stock found at the time of survey was Rs. 38,33,000/-. Against this figure the value of closing stock computing as per the trading account at the time of survey was amounting to Rs. 24,35,000/-. Thus remaining amount of Rs. 1398000/- or say Rs. 14 lacs was surrendered by the assessee. The assessee has computed the gross profit and value of closing stock during survey for the period 1.4.98 to 11.12.98 according to which gross profit as on 11.12.98 after including the sum of Rs. 14 lacs came to Rs. 18,75, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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