TMI Blog2019 (2) TMI 1946X X X X Extracts X X X X X X X X Extracts X X X X ..... ms and surmises, has considered the extrapolation for only two A. Ys whereas, if he was so confident about the seized documents and income therein, he should have extrapolated for the entire block period of six years. AO did not give any reason for this. Considering the facts of the case in totality, we are of the considered opinion that the CIT(A) rightly deleted the additions made by the Assessing Officer but erred in sustaining the addition which, In our considered opinion, on facts discussed hereinabove, needs to be deleted also. - ITA Nos. 971 and 1176/DEL/2015 - - - Dated:- 28-2-2019 - N.K. Billaiya and Suchitra Kamble, JJ. For Appellant: Salil Aggarwal, Shailesh Gupta, Advs. and Ashima Neb, Sr. Adv. For Respondents: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asked to show cause as to why the addition of suppressed sales should not be made. In response, the assessee filed the following reply: Now we would like to draw your kind attention that total undisclosed quantity (as per weight slip) of 62,17,720/- mentioned in the notice is not true and the basis of working out the quantity of 62,17,720/- have not made available to us. The quantity of milk as per weight slip is 49,32,805 and the details in respect of the same is enclosed and marked as Annexure-I. Further from the perusal of the weight slip it may be observed that husk and coal also forms part of weight slip and this fact have also been brought the notice of the department in the course of post search proceeding. Without prejudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as under: 7. Accordingly, the Assessing Officer made addition of ₹ 7.11 crores. 8. The assessee carried the matter before the CIT(A) and vehemently contended that the Assessing Officer has grossly erred in treating the entire sales as income of the assessee. It was further brought to the notice of the CIT(A) that nothings in the loose sheets pertained to only a period of 20 days and on the basis of the same, the Assessing Officer could not have extrapolated the figures to two A.Ys. 9. After considering the facts and detailed submissions, the ld. CIT(A) observed that the entire difference in purchase of milk as per daily milk procurement sheets and as recorded in the books cannot be taken, as daily procurement sheets a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined by the CIT(A) also deserves to be deleted. 13. We have given a thoughtful consideration to the orders of the authorities below. The undisputed fact is that daily milk procurement sheets found and seized during the search proceedings pertains to the period 01.07.2011 to 31.07.2011. This means that the sheets pertain to only 20 days. It is also not in dispute that on the basis of these milk procurement sheets, one of the directors Shri Sandeep Aggarwal admitted to the fact that he is dealing in sale and purchase of milk in his individual capacity. This fact has also been acknowledged by the Assessing Officer. Accordingly, Shri Sandeep Aggarwal offered ₹ 93 lakhs in his return of income for A.Y. 2012-13 and the same has been asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith. Therefore, making addition on the basis of profit margin is more logical and rationale. Moreover, though the daily milk procurement sheets were found but no document was found wherein the revenue can say that the assessee was also making undisclosed purchases. The most important fact which needs to be highlighted is that the Assessing Officer, in his whims and surmises, has considered the extrapolation for only two A. Ys whereas, if he was so confident about the seized documents and income therein, he should have extrapolated for the entire block period of six years. The Assessing Officer did not give any reason for this. 17. Considering the facts of the case in totality, we are of the considered opinion that the CIT(A) rightly dele ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
