Consistency in turnover estimation upheld at 12.5%, while additions for alleged undisclosed payments and cash were sent back for verification.

Following the assessee's own earlier years, the Tribunal applied consistency and upheld estimation of suppressed turnover with profit restricted to 12.5% on that turnover. Additions for alleged undisclosed payments were not sustained because the books and seized electronic records needed factual verification before any final finding. The addition relating to cash found during search was also set aside, as it could not stand without examining the books of account and the seized hard disk material. The matter on these two items was remitted to the Assessing Officer for fresh verification, while the 12.5% profit estimation was left undisturbed.

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Issues: (i) Whether the suppressed turnover and the profit thereon should be determined by following the estimate adopted in the assessee's earlier years and restricted to 12.5% net profit on the suppressed turnover; (ii) Whether the additions made on account of alleged undisclosed payments should be sustained without verification of the books and seized electronic records; (iii) Whether the addition relating to cash found during search should stand without examining the books of account and the material available in the seized hard disk.

Issue (i): Whether the suppressed turnover and the profit thereon should be determined by following the estimate adopted in the assessee's earlier years and restricted to 12.5% net profit on the suppressed turnover.

Analysis: The dispute on estimation was already covered by the assessee's own earlier years, where the coordinate Bench had upheld the method of estimating suppressed turnover and restricted the profit element to 12.5%. In the absence of any compelling distinguishing circumstance, the settled position was followed on the principle of consistency.

Conclusion: The estimate of suppressed turnover was not disturbed, and the income from such turnover was directed to be computed at 12.5%.

Issue (ii): Whether the additions made on account of alleged undisclosed payments should be sustained without verification of the books and seized electronic records.

Analysis: The assessee asserted that the payments were recorded in the books, which were available with the Department along with the seized hard disk. A statement recorded at search was held not to preclude a proper enquiry into the books and electronic records. The matter therefore required factual verification before a final view could be taken.

Conclusion: The addition was set aside and the issue was restored to the Assessing Officer for fresh verification.

Issue (iii): Whether the addition relating to cash found during search should stand without examining the books of account and the material available in the seized hard disk.

Analysis: The assessee relied on cash-book and venture-wise balance material already placed on record, and the Department was in possession of the books and seized computer data. The addition could not be sustained merely on assumptions without verifying the available records.

Conclusion: The addition was set aside and the issue was restored to the Assessing Officer for proper verification.

Final Conclusion: The assessee obtained partial relief on the substantive additions, while the Revenue's challenge to the 12.5% estimation failed. The matters concerning alleged undisclosed payments and cash found were remitted for fresh examination.

Ratio Decidendi: In matters of estimation, a settled view in the assessee's own case should ordinarily be followed in the absence of compelling change in facts, and additions based on alleged undisclosed payments or cash cannot be sustained without verification of the books and relevant seized records.

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