2011 (7) TMI 1191

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed CIT(A) erred on facts and in law in deleting the addition of Rs. 2.88.544/- - made by the A.O, on account of G.P. The learned CIT(A) erred on facts and in law in giving relief of Rs. 9,22,400/- out of total addition of Rs. 11,56,400/- made by the A.O. on account of unaccounted investments made for various sales transactions. On the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld the order of the A.O. It is therefore, prayed that the order of the Assessing Officer may be restored to the above extent 3. The grounds raised by the assessee in the cross objection are as under: "1.0 The grounds of cross-objections mentioned hereunder are without prejudice to one another. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....following two judicial pronouncements: (a) CIT Vs President Industries 258 ITR 654 (Guj.) (b) CIT Vs Gurbachan Singh J Juneja 302 ITR 63 (Guj.) 6. As against this, the Ld. D.R. supported the assessment order. 7. We have considered the rival submissions, perused the material on record and have gone through the orders of authorities below and the judgements cited by the Ld. A.R. Ld. CIT(A) has confirmed the addition to the extent of Rs. 2.34 lacs being the amount of peak sales. Ld. A.R. placed reliance on the judgment of Hon'ble High Court of Gujarat rendered in the case of CIT Vs President Industries (supra) in support of his contention that unless there is a finding to the effect that investment by way of incurri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at no addition should be made in respect of the alleged investment by the assessee in unaccounted purchase and, therefore, addition only to the extent of profit in respect of unaccounted sale is justified. We, therefore, uphold the addition to the extent of profit @ 7% on unaccounted sales of Rs. 11,56,400/-. 8. Regarding one more aspect i.e. regarding cash found of Rs. 4.52 lacs, we find that no addition was made by the A.O. for such cash found. Hence out of the total addition made by the A.O. in respect of unaccounted sales of Rs. 11,56,400/-, we confirm the addition to the extent of 7% of it i.e. Rs. 80,948/- and delete the balance amount. 9. Regarding the 2nd addition made by the A.O. in respect of G.P. of Rs. 2,88,544/- by applyi....