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M/s. Mundra Woolen Mills (P) Ltd. Versus The ACIT Circle- 2, Ajmer

2015 (6) TMI 6 - ITAT JAIPUR

Restoration of original appeal - Rule 10 of Income Tax Rules regarding filing of affidavit - Claim of unlawful survey proceedings - A crude attempt to influence independent judgment process for petty professional ends - Held that:- It may be pertinent to mention that ld. Counsel Shri K C Moondra FCA and Mukul Moondra ACA, seem to be ignorant about filing a proper power of attorney, which is to be given on a NON JUDICIAL stamp paper. Whereas they have filed a plain printed paper with ₹ 10/- .....

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admissible and in violation of ICAI guidelines.Under these facts and circumstances, we find that the ld. Counsel for the assessee Shri K.C. Moondra and his son Shri Mukul Moondra are liable for suitable proceedings for their professional misconduct, misbehavior, wasting the time of court and unlawfully attempting to interfere in the process of judicial dispensation.

Considering all the facts, circumstances and material on record by invoking rule 32A of the ITAT Rules we hold that Shri .....

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registry to Institute of Chartered Accountants of India to take appropriate disciplinary action against them in terms of ICAI rules and guidelines.

Matter of main appeal - Right from the time of survey and thereafter appellant and his CA Shri K.C. Mundra did not cooperate with the department in finalizing the assessment proceedings. Only wild allegations were made against all the officers of the department without any basis thereof. From these facts it is clear that survey action was .....

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no respect for law enforcement agency. It has been held by the ld CIT(A) that there is absolutely no material on record on the basis of which survey proceeding can be called unlawful or arbitrary. Accordingly, he dismissed the ground No. 1 of the appeal.

As per Section 133A of the Act the concerned Assessing Officer authorized income tax authority to conduct a survey. The income tax authority go to the business premises to verify the stock as well as cash position on the date of surve .....

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essee himself. It is found that assessee was non cooperative with the survey team as he has not given statement U/s 133A and also not signed on it. From the record, it is fact that a survey took three days to complete the survey proceeding which shows that there was non-cooperation from the Director of the company. As per assessment order also, there was non-cooperation and the survey team had impounded 51 books of account, which were relevant to various assessment years, which has been reproduc .....

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,54,98,772.93 and physical stock during the course of survey was found at ₹ 1,41,16,603/-. There was a shortage in stock at ₹ 1,13,82,169/-. The assessee has shown G.P. rate in immediate preceding year @ 16.22% on the basis of this GP rate, the total GP addition was made by the Assessing Officer and confirmed by the ld CIT(A) had ₹ 18,46,187/- is justified. There was a discrepancy during the course of survey on the basis of stock inventory prepared physically as well as stock p .....

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re both the authorities. Before us also no reply was submitted. The ld Assessing Officer applied the preceding years G.P. rate in absence of any reply from side of assessee. Therefore, we uphold the order of the ld CIT(A). Accordingly, this ground of appeal of the assessee is dismissed.The ld CIT(A) found that 143(2) notice was dispatched through speed post on 18/8/2009. Therefore, he found that allegation of the appellant that notice U/s 143(2) of the Act was fabricated by the Assessing Officer .....

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ith reference to service of notice U/s 143(2) of the Act in absence of evidence. The assessee alongwith his authorized representative appeared before the Assessing Officer and had cooperated in assessment proceedings, therefore, as per Section 292BB of the Act where as assessee has appeared in any proceeding or cooperated in any enquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provisions of this Act, which is required to be served upon him, has been .....

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hat the moment, the notice is signed and put in the course of transmission by the department, the notice is deemed to be served, unless the contrary is proved. The assessee had not proved contrary, therefore, notice U/s 143(2) of the Act has been served on the assessee properly by the Assessing Officer. Therefore, the assessment passed by the ld Assessing Officer is valid. This ground of appeal is dismissed. - Decided against the assessee. - ITA No. 401/JP/2012 - Dated:- 27-5-2015 - Shri R. P. T .....

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-2014(received in this office on 30-10-2014) in Miscellaneous Application No. 32/JP/2014 prayed for showing leniency and recalling the original order. The present bench after hearing Shri K C Moondra FCA, in the interest of justice, vide order dated 26-02-2015 recalled the order of dismissal of appeal and restored the original appeal for hearing. This clearly indicates that this ITAT Bench was rather benevolent to Mr. Moondra and had no prejudice or bias whatsoever against the assessee or his co .....

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ring the course of hearing of appeal bench found that these facts were not emerging from the record, consequently his contentions based thereon were not permissible u/r 10 of ITAT rules . Unaware of this rule Ld. Counsel s attention was drawn to Rule 10 of Income Tax Rules which reads as under:- Filing of affidavit 1-. Where a fact which cannot be borne out by, or his contrary to, the record is alleged, it shall be stated clearly and concisely and supported by a duly sworn affidavit. 2.3 It was .....

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time which bench readily acceded by adjourning it to his chosen date 29-4-15, following order was passed by the bench: 4-03-2015 - Assessee counsel Shri K. C. Mundra, C.A. undertook to file a detailed and comprehensive affidavit duly sworn by him in respect of alleged anonymous letter which is being relied on by him. Adjourned to 29-04-2015. Final chance. Sd/- Sd/- (T.R, Meena) AM (R.P. Tolani) JM 2.4 It will not be out of place to mention that it was the burden of the counsel to vouch safe his .....

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and fair play bench brought to his notice this grave omission, which he realized and voluntarily undertook to file a comprehensive affidavit. This again shows that bench was helpful to assessee and its counsel and not hostile to them in any manner. 2.5 On 29-04-2015, i.e. final date of hearing, his son Shri Mukul Moondra claiming to be an ACA (Chartered Accountant) who as not even in prescribed dress code as provided under Rule 17A of Income Tax Rules, appeared with an adjournment application me .....

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e will amount to mockery of our own judicial order which was not in conformity with canons of judicial discipline. Shri Mukul Moondra was intimated that earlier hearing was ordered as final chance, therefore, his request for adjournment cannot be acceded. Consequently the adjournment application was rejected by following judicial order: Assessee had taken this date voluntarily. Now a prefixed marriage is pleaded to avoid final chance. Rejected. Sd/- Sd/- (T.R, Meena) AM (R.P. Tolani) JM 2.7 Sinc .....

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this being final chance in his appeal, adjournment request could not be acceded which was dismissed, the appeal was heard and will be decided on merits, they should wait for the bench order. Shri Mukul Mudra then wanted to know that what will happen to client, bench expressed its help less ness as the adjournment application was rejected, appeal is heard on merits in open court. After the ITAT order is pronounced they can pursue appropriate remedy which may lie with the Hon'ble High Court. 2 .....

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R, Meena) AM (R.P. Tolani) JM 30/04/15 2.10 Without even waiting for the order Shri K C Moondra sent intimidating letters on 30-4-15 received on 1-5-15 & 2-5-15 received on 5-5-15, hurling all sorts of wild accusations about the presiding officer ld. JM and bench functioning. Such nasty and frivolous accusation can only be product of fit of furry. The barrage of indiscriminate allegations include misuse of official position, corruption, insulting him and son: colluding with retired income ta .....

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an adverse order; in order to salvage his professional interest to willy nilly win the case, by a hideous scheme he sent letter Dtd. 2-5-15 to Hon ble President ITAT and Hon ble Law Secretary Govt. of India and Asst. Registrar Jaipur making wild accusations of all sorts like corruption, collusion, insulting, bias, prejudice and what not. These contemptuous letters speak by themselves, frivolity of language, distorted contents and apparent self contradictory contents of his letter demonstrate th .....

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rt. It reflects their inaptitude in failing to appreciate the vital fact that thus adjournment was granted as a final chance which was agreed by them. They keep holier than thou attitude ; if I commit wrong or disobey there is nothing wrong in it but if the bench doesn t conduct itself in my desired way then bench is by default wrong and I raise scandalous tirade against bench. To show their might they shoot frivolous complaints, file litany of motivated RTIs proclaiming to be RTI activist. Thes .....

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3 A litigant or his representative cannot directly or indirectly; by overt or covert means attempt to influence the process of judicial decision making by shooting intimidating and derogatory letters or to pressurize the judicial officers while deciding a heard appeal. 3.4 The bench has rather extended the best possible benevolence and grace to the assessee and his counsel by recalling its already dismissed appeal; giving date of choice for fresh hearing i.e. 4-3-15; hearing the appeal on schedu .....

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hat bench was impartial and fair to the ld. Counsels and assessee. There is nothing to even remotely suggest any reason on the part of bench to show partiality, prejudice, bias or intention to insult Mr. K C Mundra or his son who are unknown to us as they come from a far away place Sumerpur and are rarely seen in the ITAT proceedings. They were treated with deserving dignity by offering help and guidance in open court proceedings. 3.5 Perhaps they are enraged on their own professional inaptitude .....

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re doesn t stop here, camouflaging under the self proclaimed virtue of an RTI activist, motivated to bully the judicial officers, he deliberately filed various RTI applications asking for about 81 queries in respect of number of personal details about the judicial officers including their leave, HQ leaving permission, use of car, attendance in office, timings of holding courts, in whose case adjournments were granted or not granted, when officers go to Delhi, whom do they meet etc. etc. The abov .....

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interfering and obstructing judicial process which apart from awarding of cost u/r 32A of ITAT rules is liable for appropriate contempt of court proceedings as well. Such attempts need to be seriously deplored, firmly tackled and suitably dealt with to send a message in professionals fraternity to behave properly and conduct themselves as ordained by ITAT rules and standing orders; court rules, ICAI instructions, professional ethics and etiquettes; Bar council of India guidelines in this behalf. .....

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seem to be ignorant about filing a proper power of attorney, which is to be given on a NON JUDICIAL stamp paper. Whereas they have filed a plain printed paper with ₹ 10/- court fee stamp which is not a valid and prescribed power of attorney. Thus their appearance could have been lawfully denied by the bench. This again shows the lenient approach of the bench bellying his wild allegations. 3.10 Furthermore the ICAI guidelines provide that every chartered accountant shall mention his regist .....

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g to interfere in the process of judicial dispensation. 4.1 Considering all the facts, circumstances and material on record by invoking rule 32A of the ITAT Rules we hold that Shri K.C, Moondra and Shri Mukul Moondra are liable for levy of costs as prescribed by said rule 32A. Consequently, we impose cost of ₹ 25,000/- on Shri K.C. Moondra and ₹ 10,000/- on Shri Mukul Moondra for their delinquencies as mentioned above. Separate proposal under Contempt of Court Act will be duly forwar .....

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. Entire alleged survey proceedings against the appellant was totally unlawful, arbitrary, hypothetical, fabricated, unfair, unreliable and with full of pressure & harassment tactics and therefore, entire survey proceedings, assessment and additions based on alleged survey proceedings are unlawful, arbitrary, hypothetical, fabricated, unfair and unreliable and therefore, liable to be quashed. 2. Ld. Commissioner of Income Tax (Appeals) erred in law in confirming following incorrect facts as .....

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of stock found on 17.09.2007 amounting to ₹ 2,43,03,171.34 has been changed without no change in value of purchased and sales which is not possible . E. Page No. 11- Figures of stock as per computer books generated has been changed without no change in value of purchase and sales which is not possible . 3. A. Ld. Commissioner of Income Tax (Appeals) erred in law in confirming the addition of ₹ 18,46,187/- @ 16.22% G.P. by estimating/deeming concealed sales for ₹ 1,13,83,169/- , .....

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ming the rejection of the books of appellant U/s 145(3) merely on the basis of a self created stock inventory as on 18/09/2007. Alleged computerized stock inventory as on 18/09/2007 is a creation of I.T. Officials and same is totally self-crated, unlawful, arbitrary and fabricated just for harassment of appellant. 5. Ld. Commissioner of Income Tax (Appeals) erred in law in confirming the trading addition of ₹ 16,53,869/- by creating an artificial fault of appellant and in absence of any de .....

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Commissioner of Income Tax (Appeals) erred in law in confirming the trading addition on account just for creating high-pitched demand ignoring the fact that the manual stock register is maintained by the production section of appellant for few items and that too was incomplete and stock of goods (work in progress) and stock on consignment are not at all recorded in that register. In fact, that register was not for accounting purpose but it was just for sake of convenience of production section .....

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. 8. The appellant requests to add, alter, amend, delete, substitute, withdraw or modify any of the grounds of appeal on or before hearing of the appeal. 5.1 All the grounds raised by the assessee are against the survey proceedings conducted U/s 133A by the Assessing Officer and making addition on the basis of survey material, confirming rejection of books of account U/s 145(3) and confirming the trading addition of ₹ 16,53,869/- . The ld Assessing Officer observed that the assessee compan .....

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the Act and issued notice on 13/8/2009 fixing the case for hearing on 28/8/2009. On that date, no body attended the proceeding. Thereafter a detailed questionnaire U/s 142(1) of the Act was issued on 09/08/2010 fixing the case for hearing on 17/08/2010. The assessee raised objection vide its letter dated 14/08/2010 which was replied by the ld Assessing Officer vide office letter dated 26/08/2010 and had disposed of the objection made by the assessee. Further notice U/s 142(1) of the Act was iss .....

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ed for 26/10/2010. As the Assessing Officer observed that in response to above letter, Shri K.C. Mundra, AR of the assessee attended the proceeding time to time and filed details. Produced books of accounts, which were examined on text checked basis and the case was discussed with him. During the course of survey operation, following books/Papers were found and impounded, the details are as under:- S. No. Particulars F.Y. Remarks 1 Stock Register 2006-07 Not pertain to relevant F.Y. 2. Stock Reg .....

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11. Consignment register 2006-07 Not pertain to relevant F.Y. 12. L.C. Payment Register 2007-08 Checked and Verified 13. Consignment Register 2007-08 Checked and Verified 14. Nakal Bahi 2006-07 Not pertain to relevant F.Y. 15. File to M/s Live House 2007-08 Checked and verified 16. File of M/s Khifaf trading Co. Damman 2007-08 Checked and verified 17. File to M/s Maher Daliwati, Syria 2006-07 Not pertain to relevant F.Y. 18. File of M/s Al Hezam Intl trading & Contracting, Shuwaikh 2007-08 .....

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007-08 Checked and verified 24. File of M/s New Zealand Wool service Int. Ltd. New Zealand. 2007-08 Checked and verified 25. File of M/s Al Habbal Trading Syria 2007-08 Checked and verified 26. File of M/s J.P. Hermes Wol Handel, Holland 2007-08 Checked and verified 27. File of M/s Altayyor Est. for trading & contracting, Saudi Arabia 2007-08 Checked and verified 28. File of M/s Khifaf trading Ext. Damman, Saudi Arabia 2007-08 Checked and verified 29. M/s Al Hezam Intl. trading & Contrac .....

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nd 2005-06 2003-04 to 2005-06 Not pertain to relevant F.Y. 36 Muster Roll Register w.e.f. 01/4/2007 2007-08 Checked and Verified 37 Loose papers file Suraj - Bills of expenses pertain to A.Y. 2008-09 verified 38. Statement of stock in godown and compound held under lien to SBBJ Kekri (A/c No. 51051325124) 2006-07 & 200708 Not pertain to relevant F.Y. 39 M/s Al Tayyar Ext. for trading & contracting, Saudi Arabia 2007-08 Checked and Verified 40 Scouring shild F.Y. 2007-08 2007-08 Checked a .....

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Y. 46 Krishi Upaj Mandi file - High Court related file pertains to year 2005-06 and 2006- 07 47 Register of Adult workers 2007 Not pertain to relevant F.Y. 48 Statement of stock in Godowns and compounds in possession of and held lien to SBBJ Kekri 1998 to 2006 Not pertain to relevant F.Y. 49 File named Bhadoi file 2005-06 Not pertain to relevant F.Y. 50 File named Deluxe shipping Agency correspondence 2002-04 Not pertain to relevant F.Y. 51 Loose papers file named letter received file - Pertain .....

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to M/s Mundra & Co. as reported by survey team (on record). The photocopy of above inventory had already been taken by the assessee and during the course of assessment proceedings after applying the rate and calculating the value of the items the value of total inventory produced before the undersigned having the total amount of the stock found on the date of survey was 2,26,167 kg. amounting to ₹ 1,41,16,603/- (Value calculated by the assessee). (b) The stock found in stock register .....

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287.04 6 Indian Wool 2. 17.09.2007 49300.2 20 Unscrewed 3. 18.07.2007 2041.00 32 Screwed 4. 21.08.2007 2531 35 Saudi Arabia Wool 5. 15.09.2007 7548 37 Saudi Arabia Wool 6. 18.07.2007 8763 70 Surya Wool 7. 07.9.2007 4529 77 Itly Wool 8. 23.8.2007 6527 82 Kuwati Wool 9. 23.08.2007 6150 82 Kuwati Wool 10. 05.08.2007 5860 87 Holland 11. 24.6.2007 13139 91 Newzealand Wool 12. 05.08.2007 9360 92 Newzealand Wool 13. 07.8.2007 5326 95 German Wool 14. 15.09.2007 6893 169 Screawed Woolen Yarn 2,23,274 @ 5 .....

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to explain the difference of stock generated by computer from office and record of the assessee during the survey operation to be differ as on 17/09/2007 and 18/09/2007 and from the stock register impounded from the business premises of the assessee. The assessee reply dated 06/12/2010 has been reproduced by the Assessing Officer on page 6-7 and 8 of the assessment order. The Assessing Officer considered the assessee s submission and held that inventory was prepared by the personnel of Income Ta .....

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sing Officer had reproduced the statement U/s 133A of the Act as under:- The Assessing Officer held that during the course of survey, statement of Shri Shivratan Mundra was recorded and signed by him. Copy of statement was provided vide ordersheet entry dated 22/10/2007 and 25/10/2007. The ordersheet entry was as under:- 22/10/2007 Sh. Shivratan Mundra Director of the company alongwith Sh. K.C. Mundra FCA/AR present inspection of the documents allowed and copy of documents/statements given as de .....

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produced for verification with impounded material and so far as reconciliation of stock as on 17/09/2007, 18/09/2007 as per department and as per the assessee the reconciliation as under:- Actual Stock as per latest books ₹ 2,54,98,772.93 (A) Italy Container 12,06,549.34 (B) Sody 1320.00 ₹ 12,07,869.34 ₹ 2,42,90,903.59 Add: Difference in WIP ₹ 12,267.75 ₹ 2,43,03,171.34 5.5 The Assessing Officer held that no details/evidence produced before him to substantiate the d .....

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hase and sale. As per stock register impounded during the course of survey, the stock position had been shown 2,23,274 KG of ₹ 1,13,11,060/- . There was a difference in the stock as per stock register i.e. ₹ 1,13,11,060/- and value of stock submitted by the assessee during the course of assessment proceedings at ₹ 2,54,98,772.93. The stock position as per computer generated book as on 17/09/2007 was ₹ 2,43,03,171.34 and on 18/09/2007 at ₹ 2,38,80,266/-. The assessee .....

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unted sale of different varieties of wool. The gross profit earned of ₹ 1,13,82,169/- being unaccounted sale of different varieties of wool is applied @ 16.22%, which is the G.P. rate declared by the assessee in A.Y. 2007-08. Thus, the value calculated at ₹ 18,46,187/- and same was added in the total income of the assessee and penalty proceeding U/s 271(1)(c) of the Act had been initiated for furnishing inaccurate particulars of income. The Assessing Officer further observed that the .....

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s 145(3) of the Act. The Assessing Officer applied the G.P. rate of preceding year i.e. 16.22% on declared sale at ₹ 7,68,23,116/-, which gives G.P. at ₹ 1,24,60,709/- after reducing the gross profit declared by the assessee in return at ₹ 1,08,06,840/-. The net difference of ₹ 16,53,869/- had been added to the total income declared by the assessee for which Section 271(1)(c) penalty were also initiated for non disclosing of correct particulars of income 6. Being aggrieve .....

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ical location of various items is also specified in the inventory e.g. items at S.No. 35 to 42 were in workshop, while S.No. 43 to 48 were in the godown opposite office. Items at S.No. 51 to 59 were inside shade and S.No. 49-50 were lying outside shade. S. No. 60 to 64 were in godown having DG set, while 81,82 were in garage. This clearly proves that inventory was duly prepared by survey team. b. Exact description of each item is mentioned such as German Wool, Indian Wool, Newzealand Wool, Dutch .....

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y. The stock taking continued on next day als. Therefore, allegation of appellant that the entire stock inventory was prepared in two to three hours is factually incorrect. The affidavit of Shri Shiv Ratan Mundra to the effect that no inventory was prepared till 4 P.M. on 20/09/2007 is also factually incorrect. d. On last page of the inventory pagewise total of stock summary is given as follows: i. Page 1 24665.750 Kg ii. Page 2 69063.000 Kg iii. Page 3 96739.000 Kg iv. Page 4 35700.000 Kg v. Pa .....

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gnature of Shri S.R. Mundra on the stock inventory is forged. This allegation of appellant is absurd and deserves rejection on the face of it. Similarly the allegation that his signature was obtained in hospital in semi conscious state is also absurd. Shri Shiv Ratan Mundra refused to sign the statement and the statement was concluded without his signature. If survey team had to obtain his signature on stock inventory in semi conscious state, there is no reason as to why his signature on stateme .....

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earlier, appellant has disputed the entire addition. However, the fact remains that: a. Books of accounts of appellant were found incomplete at the time of survey. b. Appellant did not cooperate with survey team in the preparation of stock inventory. Under the circumstances the stock inventory was prepared on basis of physical verification. c. Valuation of stock was determined at ₹ 1,41,16,603/- on the basis of figures given by appellant only. d. Despite being given repeated opportunities .....

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s case the burden has not been discharged by appellant. In such a situation the claim of appellant that there was no discrepancy in stock is not acceptable. 5.7 I, therefore, hold that A.O. is justified in treating the difference of stock of ₹ 1,13,82,169/- as unexplained. A.O. is also justified in estimating unaccounted income in respect of this stock by applying GP rate of 16.22%, which is the GP declared by appellant itself for last year (A.Y. 2007-08). Addition of ₹ 18,46,187/- i .....

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(1946) 14 ITR 110 (Mad) b. Delta Engineering Co. (P) Ltd. Vs. CIT, (1990) 186 ITR 383, 385 (All). c. Laxmi Saw Mill Vs. CST (1997) 104 STC 307, 308 (MP) d. Raza Textiles Ltd. Vs. CIT (1972) 86 ITR 673 (All) e. Titaghur Paper Mills Co. Ltd. Vs. State of Orissa (1981) 47 STC 240 (Orissa). f. Kishanchand Chellaram Vs. CIT (1978) 114 ITR 671 (Bom) g. Ratanlal Omprakash Vs. CIT (1981) 132 ITR 640 (Ori) h. Bharat Milk Products Vs. CIT (1981) 128 ITR 682 (All) i. CIT Vs Pareek Bros 167 ITR 344 (Pat). .....

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sed. For service of notice U/s 143(2) of the Act, the ld CIT(A) has held as under:- 8.2 From the perusal of records it is found that notice U/s 143(2) was duly issued in this case by the A.O. on 13.08.2009 and the same was dispatched by speed post on 18.08.2009. Therefore, allegation of appellant that notice U/s 143(2) was fabricated by A.O. is baseless and not acceptable. 8.3 When two versions of an instance are given, one of them is by a responsible Government officer and other is by an anonym .....

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43(3) is valid and lawful. Ground No. 7 of the appeal is thus dismissed. 7. Now the assessee is in appeal before us. As discussed in the preceding paras, the assessee s attitude with ITAT was not cooperative, which has been discussed in detail in preceding paras. Therefore, we decide the case on the basis of material available on record. 8. The ld DR has vehemently supported the order of the lower authorities. 9. We have heard the ld DR, assessee, written submission and perused the material avai .....

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ssessment order that stock inventory prepared by the survey team on 18/09/2007, which has been assisted by the employee of the assessee and later on duly signed by the assessee. The ld CIT(A) also considered this issue and gave the detailed findings on page 2 to 3 and stated that there was a survey U/s 133A was started on 18/09/2007 at the business premises of appellant. The survey was carried out after issuing authorization U/s 133A(b) of the Act. Authorization was presented before commencing t .....

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t the premises in night without completing the statement. On next day i.e. 19.09.2007 Shri Shiv Ratan Mundra came at around 11.30 A.M. and again left on the pretext that he will arrange labour for stock taking. He came back in the afternoon with four labour and thereafter stock taking was started. Again he left in the night without completing his statement. On the third day i.e. 20.09.2007 he came back and stock taking was resumed which continued till the evening. During all this period Shri Shi .....

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inventory of appellant company as on 31/3/2007. Thereafter it is mentioned by authorized officer that:- 9.1 The ld CIT(A) further observed that this is the statement of a responsible Government officer and there is no reason to disbelieve the same. No question was put to Shri Shiv Ratan Mundra by any officer of the survey team regarding surrender of additional income. Neither any surrender of additional income was made by him nor the survey team insisted for obtaining any surrender. However, app .....

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dra tried every possible trick to obstruct Government officers in discharge of their official duty. Search and survey operations are carried out by the income tax department as per the powers conferred by the statute. Members of survey team go to the business premises of a tax payer as representatives of the Government of India. The appellant used the terms as so called survey and alleged survey showed that he has no respect for law enforcement agency. It has been held by the ld CIT(A) that ther .....

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ey team showed the authorization to the Director of the company in the case of company and asked to sign on it. Thereafter the authorized officer starts to verify the cash on the date of survey and make inventories of stock and books of account found during the course of survey. As per stock register/ledger, they prepared stock position as on date of survey. The part of the survey team is deputed to verify the stock physically and prepared stock inventory with the help of staff or assessee himse .....

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ssessing Officer on page 2 to 4 of the assessment order but no adverse inference has been drawn by the Assessing Officer. Only discrepancy was found in the stock position on the date of survey which has been calculated by both the authorities judiciously. Therefore, we do not find any reason to intervene in the order of the ld CIT(A). According we uphold the order of the ld CIT(A). This ground of assessee s appeal is dismissed. 10. Grounds No. 2,3,4, and 6 of the appeal are against discrepancies .....

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ns addressed to AC e. RTI applications filed by appellant f. Benami letter regarding issue of notice U/s 143(2) g. Complaint of CBDT h. Complaint of DG (Vigilance) 10.1 The ld CIT(A) held that appellant spared no efforts to obstruct inquiry in his case by the department. Assessee expected from the department to accept his books result as gospel truth and any efforts made by any officer of the department to make inquiry in his case or make verification amounts to harassment according to assessee. .....

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held that stock inventory was prepared by the personnel of the income tax department and was assisted by the employees of the assessee, which was later on duly signed by the assessee. The ld AR further objected the ground No. 2 that stock value was calculated @ 55.66 (average) per KG, stock as per computer book generated have been changed without no change in value of the purchase and sale, which is not possible, this figure of stock was found on 17/09/2007 amounting to ₹ 2,43,03,171.34 ha .....

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of stock was not asked by the survey team. However, as per answer to question No. 5 of the statement Shri Shiv Ratan Mundra was taken during the course of survey operation. The statement regarding stock is reproduced as under:- 10.2 This statement was duly signed by the Director of the company Shri Shiv Ratan Mundra. Ld. AR claimed that no copy of inventory was supplied by the survey team to the assessee but the ld CIT(A) held that as per ordersheet of Assessing Officer dated 22/10/2007 and 25/ .....

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, which has been signed by Shri Ramesh Singhal and Shri Aashutosh. The assessee vide reply dated 06/12/2010 submitted that regarding discrepancy found in the stock, the stock summary as on 17/09/2007 of ₹ 2,54,98,772.93 duly signed by the AR of the assessee during the assessment proceedings has duly been discussed in earlier paras of this order. The ld CIT(A) heard the issue in detail but no efforts were made by the assessee to reconcile the differences with no details/evidences. Three fig .....

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he stock as on the date of survey comes to i.e. 2,23,274 kg of ₹ 1,13,11,060/-. Since the stock register maintained by the assessee impounded during the course of survey and its stock itself is not tallied with the stock figures by the books as on 17/09/2007. Since the value of stock as per stock register calculated at ₹ 1,13,11,060/- and value of stock submitted during the assessment proceedings at ₹ 2,54,98,772.93. It is also mentioned that figures of stock as per computer bo .....

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ce in stock (shortage) at ₹ 1,13,82,169/- was found correct, which is treated by the Assessing Officer deemed unaccounted sale of different varieties of wool. The gross profit earned on ₹ 1,13,82,169/- being unaccounted sale of different varieties of wool was applied at 16.22%, which was the G.P. rate declared by the assessee in A.Y. 2007-08. Thus, the value calculated comes to ₹ 18,46,187/- and added in the total income of the assessee. The assessee filed. Written submission b .....

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at ₹ 1,41,16,603/-. There was a shortage in stock at ₹ 1,13,82,169/-. The assessee has shown G.P. rate in immediate preceding year @ 16.22% on the basis of this GP rate, the total GP addition was made by the Assessing Officer and confirmed by the ld CIT(A) had ₹ 18,46,187/- is justified. There was a discrepancy during the course of survey on the basis of stock inventory prepared physically as well as stock position on the basis of books of account. Therefore, the Assessing Offi .....

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The assessee had not explained the reasons for decline in G.P. during the year as there was a discrepancy in the stock position as on date of survey. Therefore, he rejected the book result U/s 145(3) of the Act and applied GP rate @ 16.22% on declared sale of ₹ 7,68,23,116/-. The ld CIT(A) also confirmed the addition made by the Assessing Officer on the basis of no satisfactory reasons were given either before the Assessing Officer or the CIT(A) for fall in GP during the year. Accordingly, .....

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the ld CIT(A). Accordingly, this ground of appeal of the assessee is dismissed. 13. Ground No. 7 of the appeal is against no serving any notice U/s 143 or initiating proceeding for assessment, therefore, order so passed U/s 143 of the Act is unlawful and invalid. As per assessment order, notice U/s 143(2) was issued on 13/08/2009 and case was fixed for hearing on 28/8/2009, which was duly served upon the assessee through registered post. As discussed in earlier paras, the assessee s attitude was .....

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details. Shri KC Mundra ld AR of the assessee again appeared before the Assessing Officer and filed detail and produced the books of account. This issue challenged before the ld CIT(A), who had dismissed the appeal by observing that the assessee claimed that an anonymous letter was received by him who refused to identify himself and his own words admitted that- 13.1 The ld CIT(A) found that 143(2) notice was dispatched through speed post on 18/8/2009. Therefore, he found that allegation of the .....

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