Ld. CIT (A) deletes the addition without calling any remand report or giving the opportunity to the A.O. during appeal proceedings

IN THE INCOME TAX APPELLATE TRIBUNAL
ALLAHABAD BENCH, ALLAHABAD
(THROUGH VIRTUAL COURT),
BEFORE SHRI.VIJAY PAL RAO, JUDICIAL MEMBER
AND
SHRI. RAMIT KOCHAR, ACCOUNTANT MEMBER
ITA No.40/ALLD/2020
Assessment Year: 2015-16

ACIT,
Circle-1, Allahabad, U.P.

vs

Amit Kumar Gupta,
137/107, Meerganj, Chowk,
Allahabad, U.P.
PAN-AGPPG6256M
(Respondent)

ITA No.83/ALLD/2020
Assessment Year: 2015-16

Amit Kumar Gupta,
137/107, Meerganj, Chowk,
Allahabad, U.P.
PAN-AGPPG6256M

vs

Dy. Commissioner of Income
Tax, Circle-I, Allahabad, U.P.
(Respondent)

C.O. No. 07/ALLD/2020
In
ITA No. 40/ALLD/2020

Amit Kumar Gupta,
137/107, Meerganj, Chowk,
Allahabad, U.P.
PAN-AGPPG6256M

vs

ACIT,
Circle-1, Allahabad, U.P.
(Respondent)

Appellant by: Ms. Nidhi Verma Singh, CIT DR
Respondent by: None
Date of hearing: 03.08.2021
Date of pronouncement: 01.09.2021
O R D E R

It transpires from record that right from the beginning, nobody is appearing on behalf of the assessee though on some occasions, the assessee has filed the application for adjournment of the hearing. Repeated notices were issued to the assessee through all modes including the email sent to the assessee at the email ID given by the assessee in the Form No. 36 but the assessee has not responded to the notices issued by the Tribunal.

2. The assessee is an individual and is in the business of trading of Gold and Silver Jewellery. There was a survey under section 133A of the Income Tax Act on 20.02.2015 at the business premises of the assessee bearing no. 137/107, Meerganj, Allahabad. During the survey proceedings one Sri. Deepak Kumar Gupta, the brother of the assessee were present at the business premises and his statement was recorded. As per the physical verification of the stock at the time of survey, undisclosed stock of Gold and Silver was found which was admitted by Sri Deepak Kumar Gupta. Thereafter, the Assessing Officer also recorded the statement of the assessee under section 131 of the Income Tax Act during post survey enquiry wherein the assessee has explained the excess stock in part by producing certain purchase bills issued by M/s Pushpa Enterprises, Agra.

3. We have considered the submissions of the learned DR as well as relevant material on record. During the survey under section 133A of the Act carried out on 20.02.2015 at the business premises of M/s Swarn Ganga Jewellers, 137, Meerganj, Allahabad undisclosed stock of Gold and Silver Jewellery was found.

4. In our view, this finding of the CIT(A) is contrary to the facts as detected during the course of survey. It is pertinent to note that when the excess stock of Gold and Silver Jewellery was found during the course of survey proceedings which was acknowledged and accepted by the assessee in the statement recorded under section 133a of the Act as well as under section 131 of the Income Tax Act in the post survey proceedings then the undisputed quantity of undisclosed stock coupled with the statements of the assessee would constitute a tangible material which will be regarded
as incriminating material for the purpose of assessment based on the facts and excess stock found during the survey.

5. In the result, the cross appeals are allowed for statistical purpose and cross objection filed by the assessee is dismissed. Order pronounced in the open Court on 01.09.2021 through video conferencing at Allahabad.

Please find attached the enclosed file for the full judgement