Tax Tribunal Directs Deletion of Rs. 98,29,479/- Addition, Prevents Double Counting in Assessee's Unaccounted Sales.

The ITAT allowed the appeal of the assessee, directing the deletion of the Rs. 98,29,479/- addition on account of alleged unaccounted sales. The ITAT determined that the gross profit as of 31.03.2012 already included the profit from these sales, and any further addition would constitute double counting.

---

---

Issues involved:
The appeal pertains to an order by the ld. CIT(A) -1, Gurgaon dated 16.09.2016 for A.Y. 2012-13.

Summary:

Issue 1: Addition on account of alleged unaccounted sales
- The assessee challenged the addition of Rs. 98,29,479/- on account of alleged gross profit @ 28% on unaccounted sales.
- The Assessing Officer added the stock difference and gross profit on unaccounted sales based on a survey operation.
- The assessee contended that the alleged discrepancy in stock was reconciled and the addition was arbitrary and based on suspicion.
- The ld. CIT(A) confirmed the addition of Rs. 98,29,479/- based on gross profit but deleted the addition for unaccounted sales.
- The ITAT found that the gross profit as on 31.03.2012 already included profit from alleged unaccounted sales, hence, adding gross profit again would be double addition.
- The ITAT directed the Assessing Officer to delete the addition of Rs. 98,29,479/-.

In conclusion, the appeal of the assessee was allowed by the ITAT, and the addition on account of alleged unaccounted sales was deleted.

---