Smt. Asha Sharma Vs PCIT (Chhattisgarh High Court)
The Chhattisgarh High Court decided a tax appeal filed under Section 260-A of the Income Tax Act, 1961, examining whether additions towards alleged excess stock and excess cash could be sustained solely on the basis of a statement recorded during survey proceedings under Section 133A of the Act. The appeal arose from survey proceedings conducted on 03.03.2011 at the business premises of the assessee, who was engaged in trading car accessories. During the survey, the assessee disclosed excess cash of ₹6,03,109 and excess stock of ₹25,32,398, aggregating to ₹31,35,507, and a statement was recorded under Section 133A.
Subsequently, the assessee retracted the statement and did not offer the disclosed amounts for taxation. The Assessing Officer completed the assessment under Section 143(3) on 21.03.2014 and made additions aggregating to ₹48,85,840, including the surrendered cash and stock. The Assessing Officer relied on the survey statement and held that the assessee failed to provide genuine proof to explain differences in stock and cash as recorded during the survey and later scrutiny proceedings. The additions were upheld by the Commissioner of Income Tax (Appeals), and the Income Tax Appellate Tribunal also affirmed the order, though it granted partial relief by reducing the gross profit rate.
