DY. C.I.T.1(1), RAIPUR (CG) vs. SMT RAJKUMARI BAHAL, RAIPUR (CG)

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR

BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No.161/Rpr/2014 Assessment Year : 2011-2012

Dy. Commissioner of Vs. Smt. Rajkumari Bahal, Prop. Income Tax -1(1), Raipur S.P.Traders, Bombay Market, Raipur PAN/GIR No. (Appellant) .. ( Respondent)

Assessee by : Shri P.C.Maloo Jain/ A.M. Jain, AR Revenue by : Shri Ajhit Kumar Laskar, DR

Date of Hearing : 12/01/ 2018 Date of Pronouncement : 15/01/ 2018

O R D E R Per Pavan Kumar Gadale, JM This is an appeal filed by the revenue against the order of the CIT(A)-

Raipur, dated 20.6.2014 for the assessment year 2011-2012.

“ 1. Whether in law and on facts and circumstances of the case, the CIT(A) has erred in deleting the addition of Rs.31,25,100/- made by the AO out of excess stock found during survey u/s.133A of the I.T.Act, 1961. 2. Whether in law and on facts and circumstances of the case, the CIT(A) has erred in deleting the addition of Rs.5,37,309/- made by the AO out of excess cash found during survey u/s.133A of the I.T.Act, 1961.”

2 ITA No.161/Rpr/2014 Assessment Year : 2011-2012

of M/s S.P. Traders deriving income from business of wholesale trading in

cycle and cycle parts. A survey under section 133A was conducted in the

business premises of the assessee on 15.4.2010. During the survey, the

assessee had surrendered income to the tune of Rs.40,31,425/-. Out of

surrendered income of Rs.40,31,425/-, the assessee surrendered

Rs.9,06,325/- on account of cash and Rs.31,25,100 on account of stock.

The Assessing Officer required the assessee to present the books of account.

In reply, the assessee submitted that the books of account were destroyed

in fire. This explanation of the assessee was not acceptable to the Assessing

Officer, therefore, he added Rs.31,25,100/- as excess stock surrendered by

the assessee.

Further, the assessee had surrendered cash of Rs.5,37,309/- during

the survey operation. The Assessing Officer observed that the surrendered

amount was the excess cash found during the survey; therefore, same was

added to the income of the assessee.

Assessing Officer.

deleting the additions irrespective of the fact that excess stock was available

3 ITA No.161/Rpr/2014 Assessment Year : 2011-2012

in the survey operation conducted on 15.4.2010 whereas the assessee in the

assessment proceedings submitted that due to fire the books of account

were not available. The Assessing Officer has made absolute findings with

respect to stock position in his order at pages 2 to 4 of the order and has

observed that the assessee has not produced the proof and genuineness

irrespective of change of closing stock figures found in the course of survey.

Similarly, the discrepancies in the stock valuation of physical stock and

brought forward stock, there is difference of Rs.31,25,100/-, which was

added. On appeal, the CIT(A) having considered the closing stock and

opening stock dealt at pages 3 to 7 of the order was of the opinion that the

Assessing Officer erred in making addition of excess stock as per books of

account and also the difference in opening balance as per books and stock

valuation of Rs.31,25,100/- cannot be relied. Similar is the situation in case

of excess found during the survey of Rs.5,37,309/-

the CIT(A) or file any supporting documentary evidence to state that the

assessee has suppressed closing stock. Further, ld A.R. supported with

paper book containing details of financial statement and also the fact that

the fire occurred in the assessee’s business premises referred at paper book

page 14 & 15. Accordingly, we are of the substantive view that the CIT(A)

4 ITA No.161/Rpr/2014 Assessment Year : 2011-2012

has considered the findings of the Assessing Officer and statement of the

assessee and materials on record and took a conscious decision. Therefore,

we are inclined to confirm his order and dismiss the grounds of appeal of the

revenue.

Order pronounced on 15 /01/2018.

Sd/- sd/- (N.S Saini) (Pavan Kumar Gadale) ACCOUNTANT MEMBER JUDICIALMEMBER Raipur; Dated 15 /01/2018 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Dy. Commissioner of Income Tax -1(1), Raipur 2. The Respondent. Smt. Rajkumari Bahal, Prop. S.P.Traders, Bombay Market, Raipur 3. The CIT(A)- Raipur 4. Pr.CIT- Raipur 5. DR, ITAT, Raipur 6. Guard file. //True Copy// BY ORDER,

SR.PRIVATE SECRETARY ITAT, Raipur