2013 (12) TMI 411

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....s conducted in the business premises of the assessee on 19/02/2009 during which various discrepancies were noticed. As a result, the assessee admitted additional incomes of Rs. 10 lakhs, Rs. 20 lakhs and Rs. 50 lakhs for the AYs 2007-08, 2008-09 and 2009-10 respectively. Accordingly, the assessee filed a revised return for the AY 2008-09 declaring an income of Rs. 22,99,570/-. After going through the impounded material and other documents, the AO completed the assessment by making the following additions to the income admitted in the revised return:- 1. Inflation of cost of land Rs. 25,97,005/- 2. Disallowance out of expenses Rs. 8,55,754/- 3. U/s 40(a)(ia) (Marketing commission and office expenses) Rs. 11,61,011/- 4. U/s 40(a)(ia) (adv....

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....ost of land in its P&L A/c whereas the AO found that the cost as per the sale deed was only Rs. 1,17,000/-. The AO therefore added the difference of Rs. 25,97,005/- to the income of the assessee. 4. On appeal, the CIT(A) extracted the contents in the letter dated 29/12/2010 filed by the assessee before the AO at pages 5 to 7 and thereafter held as under: "5.2 I have considered the facts on record and the submissions of the AR. It is an admitted position that the original return ( as well as the original profit & loss a/c, which formed the basis for the original return) did not reflect a true and complete picture of the assessee's business and it was for this reason that the assessee filed a revised return. The transactions described by the....

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....elief of the assessee. 2. The CIT(A) ought to have accepted the registered document value of the land purchased and registered by the assessee and erred in estimating the profit at 15% before allowing partners remuneration and interest. 3. The CIT(A) ought to have considered the nature of business and quantum of the turnover and other factors while estimating the net profit at 15% of the gross receipts." 7. The assessee has raised the following grounds of appeal: "1. The order of the CIT(A) is against law, weight of evidence and probabilities of case. 2. The learned CIT(A) erred in estimating the net profit at 15% of the turnover. 3. The learned CIT(A) ought to have considered the overall financial position of the assessee in view of h....