2017 (6) TMI 408

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....n law in upholding in second round of litigation the addition of unaccounted sales of Rs. 59,40,000/- particularly, when the same was deleted by CIT (A) in the first round of litigation and the Department had accepted it by not filing the appeal to the Tribunal? (ii) Whether the Tribunal was right in law in upholding the addition made on the basis of retracted statement of the brother of the Appellant made during survey? (iii) Whether the Tribunal was right in upholding the addition of sales of Rs. 59,40,000/- as income instead of net profit thereon?" 2. The brief facts are that the assessee is running a shop selling snacks, namkeen and sweets. The assessee was subjected to survey operation under section 133A of the Income Tax Act,....

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....l remanded the question back to the CIT (A) for fresh consideration and decision on merits by its order dated 31.10.2014. 5. In the fresh round, the CIT(A) in a detailed order dated 17.07.2015 confirmed the addition of Rs. 59.40 lacs made by the Assessing Officer and rejected the assessee's challenge on this score. The assessee therefore, once again approached the Tribunal. The Tribunal by the impugned judgement dated 31.05.2016 dismissed the appeal. Hence, the present tax appeal. 6. All the three questions framed by the asessee relate to the addition of Rs. 59.40 lacs made by the Assessing Officer and confirmed by the CIT (A) and the Tribunal. The first question, however, is on the correctness of the method adopted by the CIT (A)....

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....ire issue was at large to be debated freshly and decided again. This contention of the assessee therefore, must fail. This brings us to the nature of additions and the permissibility thereof. Having heard learned counsel for the parties and having perused the documents on record, we notice that neither CIT (A) nor the Tribunal have solely relied on the confessional statement of Mahesh Biyani, brother of the assessee, in sustaining the addition made by the Assessing Officer. In fact, the order of CIT (A) which is elaborate, refers to other materials collected during the course of survey such as gross profit rate in the line of business done by the assessee. It was noticed that the gross profit declared by the assessee was much lesser than th....