2013 (8) TMI 946

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....s been filed by the assessee against the order of learned CIT(A)-23, Mumbai for assessment year 2007-08.   2. The assessee is objecting in confirming the estimated income of Rs. 6,96,448/- computed by the AO at the rate of 5% net profit on gross receipt of Rs. 2,39,20,840/- and confirming the addition of Rs. 94,84,133/- under Section 41(1) of the Act.   3. As per the order of the CIT(A....

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....y debtors, etc. Therefore resorting the Section 41(1), the AO made an addition of Rs. 94,84,133/- by finding out that this much amount is outstanding on account of sundry creditors. 4. Learned CIT(A) has confirmed the action of the AO. Now, the assessee is in appeal here before the Tribunal. 5. Learned counsel of the assessee stated that though the proper books and accounts were not maintained, ....

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....is not exorbitant. Therefore, we confirm the application of NP rate of 5% on the facts of the present case. This ground of the assessee fails. 8. In respect to addition made under Section 41(1), it was stated that once the net profit has been applied then no further addition can be made on account of any expenses or on account of trade creditor etc. It was further submitted that even on merit the....