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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
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.
The revenue has raised the following grounds of appeal:
“ 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
The relevant facts are that the assessee is an individual and proprietor
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.
On appeal, the CIT(A) deleted both the additions made by the
Assessing Officer.
At the time of hearing, ld D.R. submitted that the CIT(A) erred in
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/-
Before us, ld D.R. could not point out any specific error in the order of
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.
In the result, appeal of the revenue is dismissed.
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