2014 (2) TMI 253

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.... Per A. Mohan Alankamony: This appeal by the assessee is directed against order of the learned CIT(A)-III, Baroda dated 14th November, 2008 for assessment year 2002-03 in Appeal No. CAB/III- 198/07-08, sustaining the addition made by the AO to the extent of Rs.4,07,479/- in respect of unaccounted production and profit on unrecorded sales. 2. Briefly, the facts of the case as noted by the le....

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.... 3. Being aggrieved and dissatisfied with the above findings of the learned CIT(A), the assessee is in appeal before us. 4. The learned AR for the assessee submitted that the AO has made the addition only based on presumption arising out of the information received from the Central Excise Department without pointing out any documentary evidence regarding unaccounted production and unrecorded....

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....er relied on the decision of ITAT Ahmedabad, Third Member Bench in the case of ITO Vs Gurubachansingh J. Juneja, 54 TTJ (Ahd) ( TM ) 1 (55 ITD 75 ( TM) wherein it has been held as under: "Conclusion: "Addition of entire unaccounted sales cannot be made as sales is not income and only income by application of G.P. rate can be added; however, where unaccounted sales were computed at a particul....

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....nd material available on record. From the facts of the case it is evident that the entire addition was made by the Ld.AO based on the findings of the Central Excise Department. The observation of the Excise department was that the assessee had removed goods without payment of excise duty amounting to Rs. 5,18,698/-. Further the assessee could not produce before the Revenue the month wise sale in t....