TaxTMI 
TaxTMI 
2017 (3) TMI 90
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....atisfied with the impugned judgement and order passed by the learned Income Tax Appellate Tribunal in respective Appeals being Tax Appeal Nos.247, 275, 667, 668 and 276 of 2010 for the A.Y. 2001- 2002, 2002-2003 and 2004-2005, revenue has preferred present Tax Appeals to consider the following common question of law :- "Whether the learned Appellate Tribunal has substantially erred in directing to Assessing Officer to working the net profit @ of 5% on sales worked out by the learned CIT(A) and assessee by ignoring the specific documents seized in search & seizure operation by excise department on 23/9/2003 containing unaccounted sales material therein and confirmed on oath by Director, Sales Manager and Liason Officer of assessee company i....
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.... of the Act. The assessee filed its return of income on 8/2/2008 declaring income of Rs. 1,19,59,550/- declaring a net profit before tax. During the course of assessment proceedings the A.O. compared the profit declared in the ROI vis-a-vis the profit as per Annexure-A-7. The A.O. observed that the net profit before tax was Rs. 1,47,14,587/-, there was a short fall of Rs. 50,66,521/- in the profit declared by the assessee in its ROI vis-a-vis the profit arrived as per Annexure-A-7 which reflected the true state of affairs of the assessee Company, the assessee was asked to explain the same. 3.03. In response to the same, the assessee stated that the assessee company had derived the profits by adopting the Peak Theory. The A.O. held that whe....
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....uently, the learned tribunal has dismissed the appeal preferred by the revenue and partly allowed the appeal preferred by the assessee. 3.06. Feeling aggrieved and dissatisfied with the impugned judgement and order passed by the learned tribunal in determining the net profit at 5%, the revenue has preferred the present appeal with the aforesaid proposed question of law. 3.07. Similar order has been passed by the learned tribunal determining the net profit at 5% with respect to A.Y. 2002-2003 and 2004-2005 which are subject matters of other appeals being Tax Appeal Nos.40, 42 and 43 of 2017 and similar question of law is proposed in the said appeals. 4.00. Ms.Mauna Bhatt, learned counsel appearing on behalf of the appellant - revenue has ....
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....s / sales and considering the fact that even the Settlement Commission of Central Excise determined net profit at 5%, considering Annexure-A-7, which were with respect to Assessment Years 2000-2001 and 2003-2004, it cannot be said that for the assessment years under consideration i.e. A.Ys. 2002-2002, 2002-2003 and 2004-2005, the learned tribunal has committed any error in estimating / determining the net profit at 5%. Making above submissions it is requested to dismiss the present appeals. 6.0. Heard the learned advocates appearing on behalf of the respective parties at length. 6.01. At the outset, it is required to be noted that the sole question posed before this Court is with respect to estimation / determination of net profit by the....