2013 (2) TMI 438

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....ibunal is right in law in directing the Assessing Officer to adopt gross profit rate of 8.50% of the total turn-over declared by the assessee, instead of 9.54% applied by the Assessing Officer and confirmed by the Appellate Commissioner? [ii] Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in deleting the addition of Rs.3,74,687/- made by the Assessing Officer on account of discrepancies found in the cash book, and confirmed by the Appellate Commissioner? [iii] Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in deleting addition of Rs.80,000/- made by the Assessing Officer on account on unaccounted cash payments,....

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.... profit rate. Accordingly, directed the application of 8.50% instead of 9.64% of the G.P. rate. Of course, in the reasonings and conclusion there is no elaborate discussion with regard to the said issue. However, the reasonings are proved but specific and moreover the issue is based predominantly on the facts. The Tribunal has elaborately noted down the submissions. Both sides considers this aspect and reduced the gross profit rate. No discrepancy or infirmity is pointed out to assail this conclusion. Hence, this issue requires no consideration. 5. Second issue pertains to deletion of addition of Rs.3,74,587 on account of discrepancy in the cash book. It was noted by the Tribunal that there was a negative balance for which no substant....

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....ing book result of the assessee, therefore, there is no need to make further addition on account of disallowance of the expenditure." This requires no interference. 6. The third question pertains to deletion of addition of Rs.80,000/- on account of unaccounted cash. The Tribunal has dealt with this issue as follows:- " as regards unaccounted payment of Rs.80,000/-, the AO noted that the aforesaid sum was not entered into the books of account and accordingly treated as unaccounted payment and addition was accordingly made. Once separate addition is made on account of higher gross profit, the undisclosed payment made by the assessee outside the books of account should be telescoped against the unaccounted income earned on account of ....