2011 (12) TMI 42

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....1998. 2. The respondent is a partnership firm of father and son and is primarily engaged in carrying on business of sale and purchase of audio cassettes belonging to Super Cassettes Industries Ltd. in old Lajpat Rai Market. Search under Section 132 of the Act were conducted on the respondent on 24.09.1998. Immediately after the search, the respondent had surrendered undisclosed income of Rs.10 Lakhs. However, the respondent submits that aforesaid surrender was made to get the seized goods release.   3. After statutory notice under Section 158BC of the Act was served, block assessment return was filed by the respondent on 14.6.2000 declaring undisclosed income of Rs.13,26,380/-. The details of the said undisclosed income has been ....

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....g the GP rate to 2.5% on undisclosed sales instead of 1.86% as declared by the respondent in the block assessment return and by disallowing Rs.4,65,481/- towards expenditure. The fourth addition of Rs.2,46,047/- was on account of undisclosed stock found on the date of the search. 6. The CIT (A) deleted the first addition of Rs.15,92,601/- and reduce the second addition to Rs.3,76,976/-. The GP rate was reduced from 2.5% to 2% and expenditure claimed of Rs.4,65,481/- was allowed. The last addition of undisclosed closing stock was deleted. 7. The respondent accepted the aforesaid order passed by the CIT (A) but the Revenue moved the Tribunal. By the impugned order Tribunal has dismissed the appeal with regard to the first contention, th....

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....t and can be relied. Whether or not the said retraction was justified or merits consideration will be examined, if required, in the case of Super Cassettes Industries Limited. 11. As notice in the present case the assessee had surrendered Rs.13,26,380/- as undisclosed income for the block assessment period in the return filed pursuant to the notice issued under Section 158BC. This surrender is important and significant. Addition of Rs.3,76,000/-, Rs.2,65,481/- and Rs. 2,22,000/- (approx.) as noted above have been sustained by the Tribunal. The last addition which has been made on enhancement of GP rate of 1.86% to 2% is on the profit earned by the firm on the undisclosed sales of cassettes. 12. The Assessing Officer while making addit....