2014 (3) TMI 434

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....ction 245D(4) on 20.06.2012, the income of the applicant/assessee was estimated by the ITSC at 8% of the total turnover of Rs.50,32,61,885/-, which amounted to Rs.4,02,60,950/-. The ITSC directed that since the assessee had declared an income of Rs.8,79,336/- in the return, the additional income to be added would be Rs.3,93,81,614/-. This income was stated to have been agreed to by the applicant in the spirit of settlement. It needs to be mentioned here that the total receipts of Rs.50,32,61,885/- were taken from the'BINDATA? directory maintained by the assessee in the hard disk of the computer which was seized during the search conducted by the Income Tax Department.  3. After the order of the ITSC was passed, the Revenue filed an ap....

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....ined at Rs.50,32,61,885/- as appearing in'BINDATA? and applying the N.P. rate at 8% the direct expenses related to the sales has been assigned at 92%, which comes to Rs.46,30,00,934/-. This cost has been incurred on the total plot of land of 289.28 acres purchased and developed by the assessee for the period ending on 17.10.2000. This cost is to apportion to entire land i.e. land and plot sold as well as unsold stock of land/plot as on 17.10.2000. The proportionate cost/value of unsold stock of 109.28 acres by taking the total'BINDATA?cost at Rs.46,30,00,934/- the cost/value of closing stock comes to Rs.17,49,05,773/- (Rs.46,30,00934 X 109.28/289.28). Thus the value of closing stocks undervalued to the extent of Rs.6,27,73,623/- (Rs.17,49,0....

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.... income of the assessee which required to be settled and this method is that there should be a flat rate of net profit, expressed as a percentage of the gross receipts of the assessee. The gross receipts of the assessee were taken from the seized hard disk of the computer and,  therefore, there can be no dispute that they represented the true and correct receipts of the assessee. When a flat rate of profit is applied to the gross turn-over and the assessment of the income of the assessee is made in the manner akin to a best judgment assessment, there is no scope for making any separate addition for alleged undervaluation of stock, disallowance of expenditure, other additions under Section 68 etc. The flat rate assessment as a percentag....