2015 (5) TMI 846

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....6 and 324/2006 vide order dated 29.07.2008 directed the Tribunal to compute the appropriate rate of profit in respect of turnover of Rs. 3,99,97,585/- which had already been computed by the AO. The relevant findings have been given in paras 3 & 4 of the order date 29.07.2008 which read as under:                 "3. On the aspect of quantum, none of the other findings of the tribunal require any interference and only the issue of rate of profit to be applied needs to be reconsidered by the tribunal in the light of the material before it. To this limited extent, we remand the matter to the tribunal to compute the appropriate rate of profit in respect of the turnover....

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....ion of ITAT for the A.Ys. 1990-91 and 1991-92. The decision for the A.Y. 1990- 91 and A.Y. 1991-92 is itself erroneous as ITAT had not decided the case for A.Y. 1989-90 but merely set aside and for which the department is filing appeal u/s 254(2).               2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs. 3,10,000/- in respect of difference between the amount shown in the cash receipts issued by the assessee to M/s Krishna Store and the amount entered in assessee's cash book.                 3. Any other ground that the appellant wo....

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....same into accounted money with the help of the assessee by first depositing the cash in his account and then getting back the money through account payee cheques as sale proceeds of their goods. The AO pointed out that a search and seizure operation was conducted in this case on 29.11.1988. The AO mentioned certain discrepancies in para 4 of the assessment order dated 28.02.1992 (for the cost of repetition these are not reproduced herein). The AO was of the view that the books of accounts of the assessee did not depict actual state of affairs and were just a camouflage to disgust the actual nature of transaction between the assessee and the suppliers. He was also of the view that there was no actual purchase and sale by the assessee and he ....

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....ssessment year 1991-92. 5. The ld. CIT(A) after considering the submissions of the assessee deleted the addition by observing that there was no warrant for estimating the assessee's income by application of 1.25% rate to the cash deposited in the bank account. The ld. CIT(A) followed the aforesaid referred to orders of the ITAT and accordingly directed the AO to accept the assessee's book results for this year as well. As regards to the another addition of Rs. 3,10,000/-, the assessee submitted to the ld. CIT(A) that the cash amounts received were wrongly scribed in the receipt book due to clerical mistake which was verifiable from the record. It was further submitted that the figures shown in the primary books of accounts i.e. the cash ....

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.... Ø Satinder Kumar (HUF) Vs CIT (1977) 106 ITR 64 (HP) Ø NTPC Vs CIT (1998) 229 ITR 383 (SC) 6. Now the Department is in appeal. The ld. DR reiterated the observations made by the AO and strongly supported the assessment order. 7. In his rival submissions the ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the turnover of the assessee has been accepted by the AO and in the subsequent year similar type of addition made by the AO was deleted by the ld. CIT(A) and later on, the ITAT confirmed the action of the ld. CIT(A) while deciding the appeal the department vide order dated 12.10.2001 and 14.09.2001 for the assessment years 1990-91 and 1991-92 respec....

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....dated 12.10.2001 and 14.09.2001 respectively. We, therefore, considering the totality of the facts and are of the view that the profit declared by the assessee on the turnover of Rs. 3,99,97,585/- does not require any modification on our part. As regards to the addition on account of application of net profit rate, in the present case, it is not brought on record that the profit declared by the assessee for the year under consideration was not comparable with the profit rate declared for subsequent years which had been accepted by the ITAT. In that view of the matter we are of the view that the ld. CIT(A) rightly deleted the addition made by the AO. As regards, to the another addition of Rs. 3,10,000/- is concerned. It appears that the ld. ....