TMI Blog2008 (8) TMI 918X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee, for any source of income, and secondly, the assessee should have not offered any explanation, about the nature and sources of investments, or the explanation offered should not be satisfactory, in the opinion of the AO. In the present case, the relevant financial year is 1999-2000, and in the books of accounts of that year, this stock has been duly accounted for, and after so accounting for the same, the figure of sales has been accepted by the Department, and enhanced GP rate has been applied thereto. In that view of the matter, it cannot be said, that an investment has been made, which was not recorded in the books of account. Thus, in our view, the provisions of s. 69 cannot be said to be attracted to the pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee filed return for the relevant previous year, on 31st Oct., 2000, which was selected for scrutiny, and notice under s. 143(2) was issued on 18th April, 2001, and onwards. The assessee, in the return has shown the total sales worth ₹ 5,48,01,800, and had shown GP @ 0.93 per cent. 4. The AO, for the reasons recorded, rejected the books of account, within the meaning of s. 145(3), and then applied the GP rate of 3 per cent, as against 0.93 per cent, shown by the assessee, and accepting the amount of total sales, at the figure shown by the assessee, addition of an amount of ₹ 19,57,521 was made; then the AO proceeded to find, that during the course of survey, excess stock to the above extent was found, this figure of excess sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to the aforesaid amount, under s. 69 ? 8. Obviously, the assessee had filed regular return, and had disclosed therein a particular amount of sales, and had shown the GP, at the rate of 0.93 per cent. Obviously, the return was for the entire financial year, and the stock in question was also duly accounted for thereunder, in the books of account. Much stress was laid to the effect, that the books of account has been rejected under s. 145 and, therefore, the stock was required to be taken in the account for addition. In our view, it would suffice to say, that of course, books of accounts were rejected, but then, at the same time, the exact figure of sales, as given by the assessee, had been accepted, by the AO, and that figure has not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot offered any explanation, about the nature and sources of investments, or the explanation offered should not be satisfactory, in the opinion of the AO. 11. In the present case, the relevant financial year is 1999-2000, and in the books of accounts of that year, this stock has been duly accounted for, and after so accounting for the same, the figure of sales, as noticed above, has been accepted by the Department, and enhanced GP rate has been applied thereto. 12. In that view of the matter, it cannot be said, that an investment has been made, which was not recorded in the books of account. 13. Thus, in our view, the provisions of s. 69 cannot be said to be attracted to the price of stock in question. Though, not necessary, but sti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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