Mohit Garg Vs ITO (ITAT Delhi)
In the case of Mohit Garg Vs ITO, the appeal concerned Assessment Year 2013-14 and arose from an assessment completed under Section 143(3) of the Income-tax Act, 1961. The assessee challenged various additions confirmed by the Commissioner of Income Tax (Appeals) [CIT(A)], including additions relating to alleged undisclosed stock and estimated profit from trading transactions.
The assessee had filed a return declaring income of Rs. 21,32,220. A survey under Section 133A was conducted on 18.02.2013 at the assessee’s premises. During the survey, undisclosed stock of aluminium sheets and aluminium foil valued at Rs. 2,78,76,060 was found and inventorised. Statements of the assessee and his father were recorded on oath during the survey and later during post-survey proceedings. In those statements, the assessee admitted that the stock belonged to him and surrendered the amount for taxation in the hands of M/s Laddu Gopal Overseas.
The assessee stated during the survey that he was engaged in trading aluminium sheets purchased and sold in cash, earning a margin of approximately Rs. 1 per kilogram. The stock inventorised consisted of aluminium foil worth Rs. 67,45,680 allegedly stored at property No. 5526, Basti Harphool Singh, and aluminium sheets worth Rs. 2,11,30,380 allegedly stored at property No. 5536, Basti Harphool Singh, Delhi.
