TaxTMI 
TaxTMI 
2016 (10) TMI 895
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....riminating documents and evidences were unearthed and were impounded with identification marks, inter alia, TCS-2, TCS-4, TCS- 9, TCS-22, TCS-44, and TCS-48, relevant for the purpose of this appeal. The assessee filed his return on 28.11.2003 declaring a total income of Rs. 12,28,450/-. By way of an order dated 28.03.2006 learned AO assessed the income of the assessee at 1,53,77,200/-. Aggrieved by the said order, the assessee carried the matter in appeal to learned CIT. Ld. CIT by order dated 5.1.2007 gave certain relief to the assessee pursuant to which learned AO passed an order under section 251 of the Act granting relief to a tune of Rs. 2,99,629/-. Matter reached ITAT in appeal and the ITAT by order dated 14.12.2007 remanded the matter to learned AO for fresh disposal after de novo consideration. Subsequently, pursuant to the orders of the ITAT, learned AO vide order dated 30.12.2008 made certain additions on account of rental income and the advances received from the parties in respect of Bani Bhavan at Puri, and unexplained and undisclosed investments and income. He framed the assessment at 1,10,35,881/-. Subsequently, on 2.2.2009 he modified the same under section 154/143(....
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....at the learned CIT committed error in holding that the total turnover was accumulated through a periodic cycling of the sales amount to purchases for four times during the financial year, instead of adding the entire unexplained investment as undisclosed income. For these reasons, learned DR prayed to restore the order of the learned AO. 7. It is the argument of the Ld. AR that the learned CIT has taken the total unexplained investment as the result of rotating the same amount for four times instead of taking it as rotation for nine times in view of the tax audit report where the ratio of stock to turnover was found to be 10.10%. He further submitted that the learned CIT increased in the Gross Profit Ratio from 10.36% to 11.55% and made certain addition on this basis. 8. At the outset, it we wish to state that in respect of the learned CIT taking the undisclosed investment as the investment in four cycles instead of investment in nine cycles as pleaded by assessee, and learned CIT enhancing the Gross Profit Ratio from 10.36% to 11.55%, there is no appeal preferred by the assessee. It is only the revenue that has come in this appeal challenging the treatment of income from Ban....
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....ll keep one sweeper for every hundred pilgrims. (ii) Provide open Kirosine tins tarred within and without at the rate of one for every ten pilgrims for the collections of rubbish refuse. (iii) Cause the living rooms, varandaha and court yards to be swept and cleaned daily and the collections of rubbish and refuse to be removed. (iv) Cause all wells attached to the licensed house to be throughly cleaned once a year & except in the case of covered wells fitted with a pump shall have all well disinfected at such times and in such manner as the Magistrate shall prescribe. (v) Cause all latrines, urinal, drain cesspools and receptacles for rubbish to be cleaned daily. (vi) Display on a conspicuous part of the main entrance of the house, a ticket showing red letters not less than six inches in height: (a) The registered number of the license, (b) The number of pilgrims which the house is licensed to accommodate. (c) The period during which the license is in force. (vii) Display in a conspicuous place on the lintel of each room or on the posts of each varandah licensed for the accommodation of pilgrims a tick....
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....r of fact, the revenue has never produced any such material in support of its contention. On the other hand, vide page No. 104 and 106 of the paper book the assessee produced the copy of an order in ITA No. 49/Cal/2000 in respect of assessment year 1995-96. In this order, a Coordinate Bench of this Tribunal clearly observed that the copy of the order in respect of AY 1993-94 was produced before the Tribunal and the Tribunal observed therein that the income from the Bani Bhawan was treated as business income. Further, vide no. 107 to 114 of the paper book, the assessee produced the order dated 26.2.2010 passed by the learned CIT in respect of AY 2001-02. In this order, vide Para (i) under ground no. 3, the learned CIT observed that the Puri Municipality has given licence to run the commercial project only as a lodging/holiday home restricting the number of lodgers at 165, and the matter relating to the income of Bani Bhawan as a business income had already been decided in the past by the ITAT in the AYs. 1993-94 and 1995- 96. The learned CIT also referred therein to the order in ITA No. 49/Cal/2000 for AY 1995-96 wherein the issue was held in favour of assessee. Following the same i....
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.... this amount, learned AO also added gross profit at 10.36%. Learned AO also considered payments to Anuj Textiles and added the amount along with Gross Profit Ratio at 10.36%. Finally the learned AO added Rs. 2,60,000/- in respect of the amount under TCS-2, to reach the final figure of Rs. 91,65,486/- on account of undisclosed or unexplained investment or income. 18. We have carefully perused the order of the learned CIT. After an elaborate discussion and comprehensive consideration of the documents under TCS-2, TCS-4, TCS-9, TCS-22, TCS-44 and TCS-48, the learned CIT reached at Rs. 1,00,79,633/- as the total amount of turnover. Learned CIT did not agree with the learned AO in respect of Gross Profit Ratio, and as against the Gross Profit Ratio of 10.36% framed by AO, learned CIT enhanced it to 11.55% and added the difference amount to the income of the assessee. As already stated above, the assessee does not challenge the enhancement of the turnover from Rs. 95,61,486/- as framed by the learned AO to Rs. 1,00,79,633/- or enhancing the Gross Profit Ratio from 10.36% to 11.55%. The entire dispute in this appeal revolves around the finding of the learned CIT that the same amount wa....