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TMI Blog2020 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 & 3 involve a common issue relating to the addition of Rs. 18,27,346/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of the excess stock found during the course of survey. 4. The assessee in the present case is an individual, who is engaged in the business of manufacturing and export of leather bags and wallets. The return of income for the year under consideration was f i led by him on 01.11.2007 declaring total income of Rs. 33,71,900/-. A survey under section 133A was carried out at the business premises of the assessee on 26.02.2007. During the course of survey, stock available at the business premises of the assessee was physically verified and as per the inventory prepared by the survey team, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock which were disclosed in the books of account of the appellant. The A.O. had computed undisclosed income @ 11 % amounting to Rs .2,01,008/- on the difference of Rs .18,27,346/-. The A.R. of the appellant had challenged the inventory stock made during survey as being done on estimation of the quantity of stock. The A.O. had alleged that the quantity of stocks have been mentioned in the inventory in almost all the cases in round numbers. He also alleged that it was not possible to count such huge Quantity of stock amounting to 25488 pieces. It would appear in the submission made by the A/R of the appellant is an afterthought. The appellant had not objected to the inventory of stock during both survey and assessment proceedings. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cost. We, therefore, find no merit in the contention raised by the ld. Counsel for the assessee on this issue and rejecting the same, we uphold the impugned order of the ld. CIT(Appeals) confirming the addition made by the Assessing Officer on account of excess stock found during the course of survey. Grounds No. 2 & 3 of the assessee's appeal are accordingly dismissed. 7. In Ground No. 4, the assessee has challenged the addition of Rs. 2,01,008/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of the estimated prof it from the sale of excess stock presumed to have been made by the assessee. 8. In the assessment completed under section 143(3) of the Act, the Assessing Officer presumed that the excess stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT(Appeals) out of telephone expenses, it is observed that the said disallowance being 10% of the total telephone expenses of Rs. 4,45,576/- claimed by the assessee was made by the Assessing Officer on account of personal uses of telephone by the assessee. Although the ld. Counsel for the assessee has submit ted that the disallowance so made by the Assessing Officer at 10% is excessive and unreasonable, we are of the view that the disallowance of 10% of the total telephone expenses claimed by the assessee for personal uses is quite fair and reasonable. Having regard to al l the facts and circumstances of the case including the fact that the assessee was carrying on the business in his proprietary capacity where the personal usage co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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