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12-07-2019, Navin Ratilal Patel, Section 133A, 139(1), Tribunal Pune
This appeal by the assessee is directed against the order passed by the CIT(A), Kolhapur on 30-04-2013 in relation to the assessment year 2009-10.
2. The first issue raised in this appeal is against the confirmation of addition of Rs.34,51,951/-.
3. Briefly stated the facts of the case are that the assessee is a retail trader engaged in hardware, paints, sanitary ware and PVC pipes. Survey action u/s.133A of the Income-tax Act, 1961 (hereinafter called ‘the Act’) was carried out at the business premises of the assessee on 12/13-02-2009. During the course of survey, the assessee declared additional income of Rs.78,22,148/-, over and above his regular income, comprising of the following items:
(i) Unexplained investment in stock : Rs.34,51,951/-
(ii) Excess cash found in premises : Rs. 1,20,197/-
(iii) Unaccounted investment in Building, Furniture, Land etc. : Rs.41,00,000/-
(iv) on account of low household : Rs. 1,50,000/-
4. However return was filed with total income of Rs.6,31,060/-, not including any of the amounts offered during the course of survey. The first issue is against the confirmation of addition of unexplained investment in stock amounting to Rs.34,51,951/-. The AO recorded that the assessee, during the course of survey, accepted that he was not maintaining any books of account and never maintained any books of account even for earlier years. It has further been recorded that the assessee admitted that his accounts for earlier years were made on estimate basis. No sale bills were issued on regular basis except where customers
specifically required so. A stock inventory was prepared as on the date of survey, namely, 12-02-2009 computing total value of stock at Rs.34,51,951/-. The AO treated the entire such amount of inventory as unexplained investment for which declaration was also made by the assessee during the course of survey. The ld. CIT(A) sustained the addition, against which the assessee has come up in appeal before the Tribunal.
5. We have heard both the sides and gone through the relevant material on record. The assessee’s statement was recorded during the course of survey, firstly, on 12-02-2009 and then on 13-02-2009, copies of which have been placed at pages 27 onwards of the paper book. In the initial statement on 12.2.2009, the assessee responded to question no. 4 by submitting that no books of account were maintained of Jalaram Trade Centre, being the concern of the assessee, but all the purchase bills were available and kept. However, in response to question no.8, the assessee submitted that: “I have prepared/kept purchase registers, sales registers, day book and cash book, ledger etc., of Jalaram Trade Centre in computer”. In the final statement on 13-02-2009, the assessee again stated that the books of account were not maintained on regular basis although purchase registers for earlier years and current year were maintained. It is a matter of record that the assessee is regular Income-tax return filer. Return for the A.Y. 2006-07 was filed by the assessee declaring total income of Rs.74,520/-. A copy of such return has been placed at page 780 of the paper book. This return was accompanied by Profit and loss account and Balance sheet of the assessee. From such Balance sheet, whose copy is available at page 781 of the paper book, it can be seen that the assessee had shown closing stock as on 31-03- 2006 at Rs.4,83,243/-. For the A Y 2007-08, the assessee filed a return declaring total income of Rs.98,229/-, a copy of which is available at page 783 of the paper book. This return was again accompanied by Profit and loss account and Balance sheet. The figure of stock as on 31-03-2007 was declared at Rs.8,86,085/-. For the immediately preceding assessment year, namely, 2008-09, the assessee filed his return accompanied by Balance sheet and Profit and loss account. From the Balance sheet, whose copy is available at page 15 of the paper book, it is discernible that the declared closing stock to the tune of Rs.12,79,733/-.
6. It can be seen from the statements of the assessee recorded during the course of survey that a total surrender for Rs.78.22 lakh