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TMI Blog2020 (4) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... . 134-03-2008." 2. Brief facts of the case are that assessee is engaged in the business of selling on whole sale and retail basis. Therefore, survey action on 04-03- 1982 on the premises of the assessee and accordingly the case was taken under scrutiny and assessment was finalized determining the total income at Rs. 7,85,935/- as against return of income of Rs. 4,45,333/- 3. Aggrieved by the order of the assessing officer, the assessee has preferred appeal before the ld. CIT(A) and in the absence of assessee the appeal was dismissed and ultimately ITAT Ahmedabad Bench had restored the matter back to the file of Ld. CIT(A) for deciding afresh. And ld.CIT(A) after considering the case of both parties, dismissed the appeal filed by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h dated 14-03-2018. 8. The ld. A.R. appearing on behalf of the assessee reiterated the same arguments as were raised by him before the ld. CIT(A) and the same was reproduced below contained in para 3.2 of the order of ld. CIT(A) which is reproduced as under:- "In the appellate proceedings, the appellant has filed submissions as under: The AO has stated in his assessment order for making addition under section 69 of the I. T. Act: "In light of the above, it is clearly seen that the assessee has admitted Rs. 3,28,300/- as there unaccounted investment in stock and agreed to pay tax on the same. As such, the un-accounted investment in stock to tune of Rs. 3,28,300/- is the deemed income of the assessee within the meaning of section 69 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no shortage of stock at the time of survey as the survey team did not include certain stock lying in open yard. As regards the statement given by the assessee we would like to refer to the CBDT Circular No.286/2/2003 dated- 10-3-2003 wherein it is stated that while recording statement during the course of search and seizure and survey operations no attempt should be made to obtain confession as to the undisclosed income. Apart from above it has also been noticed that the AO has applied profit rate on shortage of the stock without examining the correct fact whether the assessee has sold raw material out of books or the assessee has sold manufactured items due to which shortage of a stock was there. Without examining such fact, mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck 60,02,144.12 Gross sale 73,74,506.25 Purchase 5,09,321.00 Closing stock 4,63,368.73 Godown expense & License fees 45,725.00 Gross Profit 12..80,684.86 Total 78,37,874.98 Total 78,37,.874.98 Gross profit in % 17.37% In the above figure of purchases, alleged un-accounted purchase/so called stock difference of Rs. 3,28,300/- is already included. Further, corresponding sales are also appearing either in turnover of sales origin closing stock. I am also enclosing herewith a copy of I.M.F.L. Purchase during F Y . 2007-08. Thus, there is no unaccounted purchase either during the whole year all any stock difference as on the date of survey. The AO himself has report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore him under section 143(3) of the Act and therefore, he avoided rejection of books." 9. On the other hand, ld. D.R. relied upon the order passed by revenue authorities. 10. We have heard the ld. counsels for both the parties and also perused the material placed on record as well as orders passed by revenue authorities. As per facts of the present case, the additions were made by the assessing officer on account of difference in stock found during the course of search in the case of the assessee on 14-03-2008 and in this respect the assessing officer has categorically mentioned in his order that Shri Ganpatbabubhai Patel, the key person who was looking after affairs was confronted on various papers annexures BF-1 to BF-15 found during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 3,28,300/- and all those bills were for cash purchases and the said difference of stock was found only because of the fact that the accountant of the firm had not recorded these cash purchases in the books of accounts till the date of survey. It is undisputed fact that there was a cash in hand of Rs. 14,34,466/- as per books of account found in the course of survey thus even if the above purchases of Rs. 3,28,300/- are taken into consideration, then, also there was positive cash balance remain in the hands of assessee's firm. However, the said arguments were rejected by ld. CIT(A) only on the ground that during the statement of Shri Ganpat Babubhai Patel, the cash found at the premises was Rs. 2,430/- and the remaining cash balance was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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