9911796707
TMI Blog2017 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... led their return of income and assessment was completed by the Assessing Officer making the addition of Rs. 36,96,697 on account of undisclosed stocks. 2. Challenging the same the assessee preferred an appeal before the learned Commissioner of Income-tax (Appeals), Bhagalpur in Appeal No.52/A-1/13-14/2010-11 and the learned Commissioner of Income-tax (Appeals) by way of impugned order dated January 19, 2016 allowed the appeal in part and reduced the addition to Rs. 25,98,065. Such an amount of Rs. 25,98,065 according to the assessee is on account of three counts. Firstly, stock worth Rs. 22,77,420 belongs to the contractors but kept in the premises of the assessee, sprinkler worth Rs. 3,50,000 belonging to the brother of the assessee and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the survey the bills and vouchers etc. could be produced before the authorities, but subsequently all such material was produced. But the authorities below failed to appreciate the same on suspicion that generally a trader has to purchase the goods either from the manufacturer or distributor but not from a third person like the assessee and it created some suspicion in the mind of the Assessing Officer. In so far as the stock worth of Rs. 3,50,000 is concerned, the necessary confirmation by way of bills issued by the manufacturer along with the transport receipts and payments details were furnished to the authorities. 5. By way of paper book the assessee produced the purchase bills with the D-VIII form and also transport recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t run the risk of any of bad debts or non-payments of the sale consideration. There is nothing improbable in this proposition put forth before us and merely because some suspicion occurred to the mind of the Assessing Officer such suspicion cannot prevail over broad probabilities. 6. In so far as the statements of the contractors are concerned, they are four out of six confirmed the version of the assessee and one Mr. Anil Kumar confirmed the same by way of letter dated September 19, 2010 recorded by the Assessing Officer. It could be found from the statement that is drawn by the Assessing Officer on page 68 of the assessment order the contractors made payments to the manufacturer by way of cash and by way of cheque, all the cash payments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and conducting the business in the same premises of old house in which the assessee is conducting the business as such it is natural that the stock to the business of Satyam Enterprises could also be found in the same premises. There is nothing unusual in this submission and the documents that are produced by way of paper books on pages 87 to 94, which shall include the purchase bills and transportation receipts, established the fact that the ownership of such property is vested in Satyam Enterprises but not in the assessee. The value of this stock cannot be included in the stock of the assessee as undisclosed stock and no additions could be made on this account. 8. For these reasons, we are of the considered opinion that the authorities b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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