2013 (9) TMI 447

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.... This appeal filed by the income tax department under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal dated 10.12.2012 in ITA No.194/Alld/2011 for the Assessment Year 2009-10 has been pressed on following questions of law:- "(1) Whether the ITAT has erred in law and on facts in deleting the addition of Rs.2,08,54,333/- made on account of undisclosed stock found at the time of search and addition of Rs.93,77,786/- made of account of extra profit addition in gross profit without appreciating the fact that the assessee was not maintaining regular books of account specially the stock register. (2) Whether the ITAT has erred in law and on facts in deleting the addition of Rs.2,08,54,333/- ....

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....ording to which the documents found during the course of search were to be presumed to be belonging to such persons and that the contests of such books of account are true. Accordingly, as per the provisions of law, it was for the assessee to rebut the evidence found during the course of search and not for the A.O. to prove that these documents were true and belongs to the assessee." We do not find that question of law as framed by the department arise for consideration in this case. The facts giving rise to this appeal are stated in paragraph 4 as follows:- "4. The brief facts of the case are that a search and seizure operation under section 132 of the Income Tax Act, 1961 (the Act hereinafter) was conducted in the residential and....

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.... major expenses were not debited. The A.O. did not accept the assessee's submissions in respect of profit estimated by applying 15% profit rate for the reasons given in the order. He also found that gross profit as shown is not reliable and correct income cannot be deducted there from. He rejected books of account by invoking sections 145 (3) of the Income Tax Act, and estimated the income with addition of Rs.19,34,764/- The CIT (A) did not agree with the A.O. for addition on merit after applying flat profit rate of 15%. He did not agree with the assessee that the addition made by A.O. is beyond the purview of Section 153A of the Act. The Tribunal has observed in para 38 of its judgment that during the course of search or post sear....