9911796707
TMI Blog2020 (12) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 133A of the Income Tax Act, 1961 was carried out in the business premises of the assessee on 06.11.2012. During the course of survey, a statement of the partner of the assessee firm was recorded wherein he agreed to surrender additional income of Rs. 50 lakhs for assessment years 2012-13 and 2013-14. Thereafter, the return of income for the year under consideration was filed by the assessee on 29.09.2013 declaring total income of Rs. 29,58,347/-. During the course of survey, a trading account for the pre-survey period was prepared by the survey team and in the said trading account duly signed by the partner of the assessee firm, Gross Profit at the rate of 4.09% was reflected. As noticed by the Assessing Officer, the trading account pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the trading account for the pre-survey period as prepared during the course of survey was signed by the partner of the assessee firm and the assessee, therefore, was not justified in disputing the reliability of the same. He further noted that the difference in stock as well as purchase & sale was found during the course of survey and this fact accepted by the partner of the assessee firm in a statement recorded during the course of survey was sufficient to show that the books of account of the assessee were not reliable. He, therefore, worked out the Gross Profit of the assessee firm for the year under consideration at Rs. 65,28,383/- by applying the GP rate of 4.09% and made trading addition of Rs. 39,60,651/- in the assessment c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A), the assessee has preferred this appeal before this Tribunal. 4. The ld. Counsel for the assessee at the outset invited our attention to the relevant portion of the statement of the partner of the assessee firm recorded during the course of survey placed at page no.46 of the Paper Book to point out that the additional income of Rs. 35 lakhs was surrendered by the assessee for the year under consideration mainly on the basis of difference in the stock and difference in the purchase & sale as found during the course of survey. He also invited our attention to the trading account and profit & loss account of the assessee firm placed at page no.30 and 31 of the Paper Book to show that the additional income of Rs. 35 lakhs disclosed du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been reflected in the trading account instead of profit & loss account as done by the assessee. If the said amount of Rs. 35 lakhs is credited to the trading account, it gives a Gross Profit of Rs. 60.67 lakhs which is 3.8% of the sales declared by the assessee for the year under consideration and since the same is more than the GP rate of 3.5% adopted by the ld. CIT(A), we find merit in the contention of the ld. Counsel for the assessee that this is not a fit case to make any trading addition and the trading addition made by the Assessing Officer and sustained by the ld. CIT(A) is liable to be deleted. It appears that this vital aspect relating to the mistake committed by the assessee by treating the income disclosed during the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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