TaxTMI 
TaxTMI 
2012 (9) TMI 229
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....plained investment in business outside the books Rs.3,14,250/- (ii) Amount of extra profit on turnover recorded in regular books of accounts Rs.11,58,795/- 2. That, in any view of the case, the additions made/sustained are highly excessive and are liable to be reduced. 3. That the assessee may be allowed appropriate relief having looking to the overall facts and circumstances of the case. 4. That the Assessment Order under section 143(3) dated 02.12.2010 is bad in law." 2. The brief facts of the case are that a survey under section 133A of the Income Tax Act, 1961('the Act' hereinafter) was carried out on 28.09.2007. The assessee is engaged in the business of purchase and sale of machining of casting and manufacturing of ....
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...., the A.O. determined total income as under :- "In view of the above discussion the income of the assessee is computed as under:- Returned income as shown by the assessee Rs.11.56,460/- Add: (i) Addition on account of unexplained investment as discussed above. Rs.10,66,764/- (ii) Addition on account of gross profit worked out on sales not recorded in books of a/c as discussed above. Rs.12,65,391/- (iii) Addition on account of extra profit worked out on turnover shown in the return of income as discussed above Rs.11,58,795 ---------------- Rs.34,90,950 Less: Amount already surrendered Rs.11,50,000 Rs.23,40,650 Total Income Rs.34,97,410" 3. The CIT(A) after considering the assessee's submission found tha....
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....sale and profit and extra profit by applying higher G.P. rate of 22.14%. The A.O. after allowing surrender amount of Rs.11,50,000/- made net addition of Rs.23,40,650/-. The CIT(A) confirmed the action of the A.O. except allowing benefit of surrendered amount and peak amount. At the time of hearing, the ld. Authorised Representative drew our attention to paragraph no.8.2 of the Assessment Order and submitted that the A.O. has wrongly made addition of Rs.10,66,764/- by applying gross turnover ratio on entire sale. From the said paragraph no.8.2 of A.O.'s order, we notice that the A.O. recorded the fact that the assessee was willing to surrender Rs.2.50 lacs during the assessment proceedings, but the same was retracted. However, we find that t....