2012 (11) TMI 746

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.... and 2001-2002 passed under section 250 r.w.s. 143(3)/147 of the I.T. Act, 1961. Since all the appeals are argued by the same Counsel together, they are disposed off by this common order for the sake of convenience. 2. The issues raised in all these appeals are identical, hence issues raised in ITA No.1813/A/2005 are reproduced hereinbelow: "1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.26,18,200/- made by the Assessing Officer. 2. It is therefore prayed that the deletion made by the Ld. CIT(A) may be cancelled and that the addition made by the AO be restored. 3. It is also prayed to allow to add, alter, amend in the above grounds of appeal." 2.1 Amongst three grounds, ground nos.2 and 3 are g....

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....y, four diaries and certain loose papers were found from which it emanated that there were some discrepancies in sales. After detailed examination from the materials found during the survey, the ld. AO made addition for suppressed sales in the following manner (Source : Order of CIT(A) dated 6.5.2005 in Appeal No.CIT(A)-VI/1 to 4/05-06).   Sl. No. Assessee's name Asst. year Difference calculated Rate adopted (Rs.) Addition made (Rs.) 1. Open Weaves 2000-01 96,400 mtrs 26/meter 25,06,400 2. -do- 2001-02 34,500 mtrs -do- 9,20,400 3. Orbit Textiles 2000-01 100700 mtrs -do- 26,18,200 4. -do- 2001-02 36,500 mtrs -do- 9,49,000 All the grounds raised before us are with respect to the additions mentio....

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....ted sale proceeds of cloth of the respective assessment year for working out the unaccounted income of the appellant and the addition to that extent in each year is confirmed and the balance amount of addition (i.e. the amount of addition on account of undisclosed sales as made by the assessing officer in respect of a particular assessment year - the amount of undisclosed income as worked out by applying N.P. rate to undisclosed sales of that year) in each year is hereby deleted. In the result, these grounds of appeal are partly allowed. 5. The ld. A.R. did not dispute about the suppression of sales. However, the ld. A.R. argued that the 'net profit rate' of the assessees as declared in their books of accounts may be applied on the su....

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.... we reject the issue raised by the ld. D.R. with respect to applicability of section 40A(3) because the facts of the case relied on by the ld. D.R. is not identical to the facts of the case before us. The decision rendered in CIT-vs- Hynoup Food & Oil India Pvt. Ltd. (supra) was in regard to disallowance made by the ld. AO under section 40A(3) based on certain seized documents which established cash payments made towards purchases, thereby, attracting provisions of section 40A(3) of the Act. In the case before us, there is no such finding in regard to cash payments attracting provisions of section 40A(3) of the Act. Therefore, we do not find any merit in this argument raised by the ld. D.R. On examining the audit report and other materia....