1999 (4) TMI 148

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....ur. The block period comprises of asst. yrs. 1986-87 to 1996-97. 2. The assessee is a dealer in tiles. His premises was searched under s. 132 on 30th Nov., 1995. The stock as on the date of search was inventorised, the value of which was determined at Rs. 3,22,808 while the closing stock as per books amounted to Rs. 5,19,732. Thus, there was a difference of Rs. 1,96,924 which has been added as un....

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....d only the profit on the difference in the stock could be taxed. The assessee itself had declared the sum of Rs. 30,000 as disclosed income on this account being 15 per cent G.P. on the difference in the closing stock. On the other hand, the learned senior Departmental Representative vehemently opposed the main submission of the counsel for the assessee regarding accumulated losses since there was....

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....to suppression of gross profit arising out of the suppressed sales. Keeping in view the past history and the G.P. rate taken by the search party, the only addition which is called for would be 15 per cent of the stock itself. We, therefore, restrict the addition to Rs. 30,000 only. Balance of addition is hereby deleted. 5. The next issue relates to disallowance under s. 40A(3). After hearing both....