9911796707
TMI Blog2023 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the case and in law. 2. The learned CIT(A) erred in holding that the action of the assessing officer in estimating the suppression of sales @ 200% by extrapolation based on the evidence available for 3 months is not acceptable. 2.1 The CIT(A) erred in failing to appreciate that the assessee has been continuously practicing the same modus operandi throughout the year. In fact the evidence for suppression of sale for FY 2016-17 and FY 2017-18 for the entire year had been found in the impounded diary. For the financial year 2019-20, evidence for suppression of sale amounting to Rs. 5,58,05,810/- has been found in the computer for the period from 01/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure incurred is contrary to facts of the case. On the date of survey, there was a difference in cash balance of Rs.9,63,312/- which could not be explained. This showed that the suppression of sales is the regular practice of the assessee and the extrapolation of undisclosed income is justifiable. 3. The CIT(A) erred in restricting the addition made to Rs.50,828/- as against Rs. 1,47,12,564/- by adopting Gross profit on undisclosed sales is not acceptable as the assessee did not prove that for unaccounted sales, there were corresponding unaccounted purchases. The assessee is showing 1.7% of GP, which is very low whereas the assessees in the same line of business are showing GP around 20 to 32%. 4. For these grounds and any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ger and cash book respectively as submitted by the assessee for the period of 3 months from April 2018 to June 2018 during the course of assessment proceedings and the Assessing Officer found that only Rs..47,95,472/- was disclosed by the assessee's group. Based on the analysis of the details unearthed in the diary and the details of cash sales ledger, cash book and the ITR submitted by the assessee, the Assessing Officer noted that 2/3rd of the actual sales collection in the form of cash and line collections were suppressed by the assessee. Only 1/3rd of the sales collection was disclosed as income for the period of April 2018 to June 2018. The Assessing Officer has also observed that the same kind of business model was adopted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2019-20 based on the evidence available for 3 months and estimated the suppression sale @ 200%. It was further submission that the assessee's GP at 1.7% is very low whereas the assessees in the same line of business are showing GP around 20 to 32%. 5. On the other hand, the ld. Counsel for the assessee strongly supported the order passed by the ld. CIT(A) on merits and also filed Cross Objection. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, a survey under section 133A of the Act has been conducted in the business premises of the assessee and a diary has been impounded, which contained evidences for the sales particulars for the period from Apr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without matching with the assets found or expenditure incurred, the addition made by the Assessing Officer is neither logically correct nor legally tenable and accordingly, the ld. CIT(A) has not accepted the estimation of suppression of sales @ 200%. 6.1 In this case, evidence was found during the course of survey indicating the suppression of sales to the extent of Rs..85,42,525/- from April, 2018 to June, 2018 for all the group concerns of the assessee. Moreover, there is no evidence indicating about the suppression of sales @ 200% of the sales returned by the respective concerns. No statement was recorded from the responsible persons about the suppression of the sales as found for the first three months of the financial year. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
