TaxTMI 
TaxTMI 
2018 (6) TMI 149
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....s per revised computation] at Rs. 24,52,693. 2. (a) The Ld. CIT (A) has erred in holding that the income from Moets Retreat club is not taxable on Real Income Theory in view of the peculiar facts of the case but as normal business income. (b) The Ld. CIT(A) has erred in confirming the addition of Rs. 37,65,834 as against addition of Rs. 55.52,618 made by the assessing officer and NIL income declared by the appellant on account of Moets Retreat, Club, Faridabad. 3. The Ld. CIT(A) has erred in confirming the order of the assessing officer in rejecting the book results u/s 145(3). 4. The Ld. CIT(A) has erred in estimating the G.P.Rate at the rate of 15% as against 6.06% declared by the appellant and 30% estimated by the AO in the case of Moets Catering Services without any adverse material on record, thereby confirming the addition of Rs. 3,48,064 out of total addition of Rs. 9,64,261 made by the AO. 5. The Ld. CIT(A) has erred in estimating the G.P. Rate at the rate of 8.90% as against 5.35% declared by the appellant and 10% estimated by the AO in the case of Moets Retreat, Faridabad without any adverse material on record, thereby confirming the ad....
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....a) The Ld. CIT (A) has erred in holding that the income from Moets, Retreat club is not taxable on Real Income Theory in view of the peculiar facts of the case but as normal business income. (b)The Ld. CIT(A) has erred in confirming the addition of Rs. 43,22,184 as against addition of Rs. 66,06,116 made by the assessing officer and Rs. 22,76,069 income declared by the appellant on account of Moets Retreat Club, Faridabad 3. The Ld. CIT(A) has erred in confirming the order of the assessing officer in rejecting the book results u/s 145(3). 4. The Ld. CIT(A) has erred in estimating the G.P. Rate at the rate of 20.53% as against 17.16% declared by the appellant and 30% estimated by the AO in the case of Moets Catering Services without any adverse material on record, thereby confirming the addition of Rs. 2,51,781 out of total addition of Rs. 11,18,259 made by the AO. 5. The Ld. CIT(A) has erred in estimating the G.P.Rate at the rate of 10% as against 8.80% declared by the appellant and 10% estimated by the AO in the case of Moets Retreat, Faridabad without any adverse material on record, thereby confirming the addition of Rs. 38,250 out of total addi....
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....ejecting the book results u/s 145(3). 4. The Ld. CIT(A) has erred in estimating the G.P.Rate at the rate of 15% as against 12.93% declared by the appellant and 30% estimated by the AO in the case of Moets Catering Services without any adverse material on record, thereby confirming the addition of Rs. 2,08,355 out of total addition of Rs. 46,28,419 made by the AO. 5. The Ld. CIT(A) has erred in confirming the addition of Rs. 38,635 out of total addition of Rs. 2,50,856 made by the AO in Moets Kabab without any adverse material on record. 6. The Ld. CIT(A) has erred in estimating the G.P.Rate at the rate of 10% as against 8.90% declared by the appellant and 10% estimated by the AO in the case of Moets Retreat without any adverse material on record, thereby confirming the addition of Rs. 1,50,359 out of total addition of Rs. 3,24,457 made by the AO. 7. The Ld. CIT(A) has erred in confirming the addition of Rs. 2,99,495 out of total addition of Rs. 5,70,553 made by the AO in Coco Palm without any adverse material on record. 8. The order of the Ld. CIT is against law and facts of the case." 7. The revenue has raised the following grounds o....
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....% declared by the appellant and 30% estimated by the AO in the case of Moets Catering Services without any adverse material on record, thereby confirming the addition of Rs. 3,22,226 out of total addition of Rs. 45,27,267 made by the AO. 5. The Ld. CIT(A) has erred in confirming the addition of Rs. 57,408 out of total addition of Rs. 5,21,661 made by the AO in Moets Kabab without any adverse material on record. 6. The Ld. CIT(A) has erred in confirming the addition of Rs. 7,745 out of total addition of Rs. 1,65,000 made by the AO in respect of Coco Palm, EDM Mall, Kaushambi . 7. The Ld. CIT(A) has erred in confirming the disallowance of expenses claimed against total commission from booking of membership of Lagoon Club i.e Rs. 1,45,058 out of total disallowance of Rs. 2,39,345, 8. The Ld. CIT(A) has erred in not adjudication the ground in respect of setoff of Rs. 4,50,000 offered as cash income out of additional undisclosed income of Rs. 20,61,635 out of various estimated additions made by AO and sustained partly by CIT(A). 9. The order of the Ld. CIT is against law and facts of the case." 9. The revenue has raised the following groun....
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....th the search party i.e. Statement recorded and panchnama papers and part of the record of the department. 3. The Ld. CIT (A) has erred in holding that the income from Moets Retreat club is not taxable on Real Income Theory in view of the peculiar facts of the case but as normal business income. 4. The Ld.CIT(A) has erred in confirming the order of the assessing officer in rejecting the book results u/s 145(3). 5. The Ld. CIT(A) has erred in estimating the G.P.Rate at the rate of 15% as against 14.38% declared by the appellant and 30% estimated by the AO in the case of Moets Catering Services without any adverse material on record, thereby confirming the addition of Rs. 825454 out of total addition of Rs. 25,17,974 made by the AO. 6. The Ld. CIT(A) has erred in confirming the addition of Rs. 1,11,616 out of addition of Rs. 1,76,673 made by the AO by estimating the G.P.Rate at 20.53% as against 19.72% declared by the appellant and 44% estimated by the AO in the case of M/s Moets without any adverse material on record. 11. The revenue has raised the following grounds of appeal in ITA No. 2786/Del/2011 for the Assessment Year 2006-07:- ....
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.... and not tenable in law and on facts." 13. The brief facts of the case are that assessee is an individual having income from house property, income from other source and agricultural income. The assessee is also carrying on business as proprietor of restaurant and catering services in the name of 'Moets Catering Services', Coco Palm, Earth etc. Assessee is also a partner in Moets Barbeque. Income tax department conducted a search on the Moets Group on 06.12.2005. Consequent to search notices u/s 153A were issued to the assessee from Assessment Year 2002-03 to 2006-07. The assessee filed his return of income for all those years and pursuant to that, assessments were made u/s 153A of the Act. In all these cases, the assessee challenged the order of the ld AO before the ld CIT (A), who partly allowed the appeal of the assessee either deleting the addition or partly reducing it. He confirmed some of the additions. Therefore, both the parties are in appeal before us for all the AY 2002-03 to 2006-07 and only revenue for Ay 2007-08 . 14. We first note the facts for AY 2002-03 . Notice u/s 153A of the Act was issued on 08.01.2007. In response to which the assessee filed its retur....
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....and it was stated that it challenges the computation of total income by the ld AO making various additions. As these grounds are general and no specific arguments canvassed, same are dismissed. 17. Therefore, now the issues before us are :- i. The profits of Moets Retreat Club challenged in Ground No 2 for AY 2002-03 and 2003-04,2005-06 and Ground no 3 for AY 2006- 07 of assessee's appeals against the order of the ld CIT (A) and Ground No 3 for AY 2002-03, Grounds no 1 ,2 and 3 for AY 2003- 04 Ground no. 1 & 2 of Ay 2004-05, Ground No 1 & 2 of AY 2005- 06 , Ground No 1 to 3 for Ay 2006-07 of the appeal of the revenue against the relief granted by the ld CIT (A) ii. Disclosure of Rs. 2 crore on account of loans during the search whether addition is correctly confirmed by the lower authorities as per Ground No 2 of the appeal of the assessee for AY 2006-07 iii. The estimation of Gross profit of the Moets catering services , Moets kabab and Moets Retreat Club as per ground no 3 to 5 for Ay 2002-03, Ground no 3 to 6 for AY 2003-04 , Ground no 3 to 7 for Ay 2004-05, Ground No 3 to 7 For AY 2005-06 and Ground No. 3 to 6 for Ay 2006-07 of assessee's ....
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....hat the entire money received as a subscription fee and annual membership fee are spent by the assessee for creating infrastructure for the club such as construction of swimming pool, green rooms, banquet halls, billiard room etc. Therefore, there is no profit available with the assessee and therefore the assessee cannot be taxed on this kind of income. The Ld. assessing officer did not accept the contention of the assessee and however proceeded to make the assessment based on seized material. The Ld. assessing officer treated the income of the club is the business income and disallowed this sum of the expenses claimed by the assessee as per the income and expenditure account. The Ld. assessing officer is also considered the claim of the assessee of commission paid to M/s enhanced network for booking of the membership fees of Rs. 26.19 Lacs and based on the enhanced network he rejected the conformation provided by that party of receipt of the company commission reached at the conclusion that the assessee has paid only the commission of Rs. 22.77 Lacs to that particular party and therefore he disallowed the remaining commission of Rs. 3.42 lakhs. With respect to the other expendi....
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....aterial collected by the AO to indicate that all the members have paid the annual fee in the year under consideration. Neither the AO has brought any material to justify the estimation of annual membership fee in respect of annual fee over and above what has been declared by the appellant. Hence, the annual fee received is held to be taken at Rs. 1.19 Lacs only. 27. The major right of expenses is the commission paid to M/s enhanced network for the booking of the membership, which was 30% of the total membership amount received. The AO has disallowed Rs. 3 42000/- on account of total commission paid by observing that same has not been correlated from the bank statements. I feel that though appellant is not having proper vouchers of payment of commission but the element of cash payment cannot be denied to the agents is a substantial amount of fees has been admittedly received the cash too. Therefore, in the interest of Justice Irish dues the disallowance from Rs. 342000/ to - Rs. 171000/- i.e. 50% of the amount disallowed. As regards other disallowance, which is one 3rd of the 3 items of the expenses of Rs. 1 404312/-, I am of the view that expenses incurred by Mr. Sandeep B....
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....e said services, they are paid 30% of the amount as commission per member. The agreement is placed at ( PB 34 to 36 Vol. 1). 1.4 The above agreement was primarily formed to raise funds for the creation of infrastructure for the club such as swimming pool , halls, gym, billard etc. The appellant has spent Rs. 25 lacs on the building up of infrastructure and Rs. 6 lacs on renovation of banquet hall. Report of valuer also placed in PB 59-62. Hence the amount spent on construction was more of revenue in nature as it was not going to derive enduring benefit to the appellant. 1.5 Due to large investment , shortage of funds , failure to provide the infrastructure of club in time the membership declined year after year and resulted in series of civil and criminal cases lodged by the customers which forced the appellant to close the club in 2005 and hand over the club to third party i.e. M/s JS Hospitality Services Pvt. Ltd. vide agreement dated 25/07/2006.(PB_15-31 Vol.1) without any consideration. The entire money received as fees was utilized for construction of infrastructure. The appellant did not receive any compensation for this and the infrastructure was given back....
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....income A.Y.2004-05 Rs. 2,89,915 31,40,310 22,25,575 ( after set off of declared income) A.Y.2005-06 Rs. 41,727 22,87,936 22,87,936 ( after set off of declared income) A.Y.2006-07 Rs. 2,49,792 2,49,792 SUMMARY OF NUMBER OF MEMBERSHIP , ANNUAL/RENEWAL FEE AND EXPENSES: Number of Members: F.Y. No. of Members enrolled as per No. of Members enrolled as per Department (AO) Difference No. of members enrolled as per CIT(A). Assessee 2001-02 854 854 NIL 854 2002-03 961 961 NIL 961 2003-04 323 323 NIL 323 2004-05 112 351 239 112 2005-06 11 350 339 11 TOTAL 2261 2839 578 2261 The details of yearwise annual fee received and declared by the asseessee,estimated by the A.O and by CIT(A) is as under: - F.Y Total No. of Member s enrolled Annual Fee Receive d from Amounts of Annual fee Received Total No. of Memb er Annual Fee R....
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....bsence of vouchers. Disallowance reduced to Rs. 367,450/- Also allowed Depreciation 2004- 05 Indirect Expenses Of Rs. 28,28,010/- Commission expense of Rs. 924,060(30% of 11,20,000+19,60,200) Total expenses 28,28,010 minus commission 924,050=1903960. Only 1/3rd disallowed of 551,200/- for Rs. 181,896/- Commission expenses of 924050 out of which Rs. 485,500/- is as per bank statement ,therefore disallowance of Rs. 439,050/- NO Disallowance as payment for expenses has supporting documents . Disallowance reduced to Rs. 219,525/- Also allowed Depreciation of Rs. 448305 @ 10% on Rs. 4683055 2005- 06 Indirect Expenses Of Rs. 18,44,173/- Commission expense of Rs. 2,14,200(30% of 714000) Total expenses 1844173 minus commission 214200=1629973. disallowed Rs. 10,55,965/- Total Commission expenses of 214200 disallowance being not correlated with bank statement Disallowance limited to 40% of 1629973 . Disallowance reduced to Rs. 107100/- Also allowed Depreciation of Rs. 70579 @ 10% on Rs. 4234750 for 2 months Judgements relied upon: * CIT vs. Birla Gwalior Pvt. Ltd. (1973) 89 ITR 266 (SC) Held that the commission foregone cannot be taken as incom....
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....g any amount on the renovation and facilities required to be offered to the club members. These members were enrolled after lots of efforts but due to lack of facilities in the club new members were reduced year after year because of lack of facilities and dispute between the owners of the land and building due to which money on account of annual fees was not received by him. 21. The ld DR submitted that according to the provision of section 69C unexplained expenditure cannot be allowed to the assessee. He further submitted that the assessee has not produced any voucher of expenditure incurred and there are seized materials. With respect to the claim of the assessee for deduction of payment of commission, he submitted that assessee has not disclosed original return of income and also did not produce the party. In view of this no documentary evidences were produce before the assessee. Even otherwise he submitted that assessee has not deducted tax at source and therefore, even if it is an allowable expenditure because of the failure to deduct tax it should be disallowed. He further referred to page No. 15 of the order of the ld Assessing Officer and submitted that 1/3rd of the exp....
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....ted by the valuation report of the authorized valuer. With respect to the applicability of provisions of section 69C of the Act he submitted that the issue in the appeal is with respect to determination nof the correct profit and not allowability of any expenditure. He submitted that when the gross receipt is not accounted for the same couldn't be the income without granting deduction for the expenditure. The Ld. CIT DR has relied upon the orders of the assessing officer and argued that the annexure A-8 and A-9 clearly shows that members were made by the assessee and the amount might have been received by him from all the members for annual maintenance also but CIT(Appeals) did not appreciate these facts and granted the relief. 23. We have carefully considered the rival contentions and perused the orders of the lower authorities. We have also called for respective annexure containing documents found and seized during the course of search. Ld AR filed the set of such annexure. Now we proceed to decide the each of the issues before us. 24. We first decide the profitability chargeable to tax for the each year in case of Moets Retreat Club. We have gone through the annexure A-8 a....
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.... paper book. The ld AO has calculated figures of all the members whose names are appearing in the seized annexure and the annual charges of all the members. The list, which is a seized document, has to be relied upon totally and not partially, unless there is some other corroborating evidence supporting the view of the assessing officer are also found. The documents has to be read as a whole and not in part and it cannot be said that one part of the document to be correct and another as incorrect. The ld CIT (Appeal) has rightly accepted the list of members and the amount shown from seized annexure as the amount is clearly depicted against each member and rightly rejected the amount calculated/estimated by the AO. As the ld OA has not made any reference to any other evidences which shows the receipt of the membership fees higher than what is computed by the ld CIT (A) , we donot find any infirmity in the orders of the ld CIT (A) in computing the membership fees which is showing the numbers of the members as well as the fees received from them. 25. We have further examined the agreements made by the assessee with LP Hospitality Pvt. Ltd., Supplementary agreement and tripartite ag....
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....embership fees by the assessee. When the membership fees has been fully charged to tax, the enhancer has confirmed the receipt of the full commission, there is no dispute about the non-payment of any commission to that party, there is no justification for restricting the allowance of the commission paid by the assessee partially. Therefore the Ld. assessing officer is directed to allow the commission to the assessee is an expenses paid to M/s Enhancer network as the full commission income has been charged to the tax by the Ld. assessing officer. 26. With respect to other expenditure incurred by the assessee and claimed by the assessee, a chart is placed at PB pg 43 , which shows the head of various expenditure incurred as well as the amount of such expenditures incurred by the assessee for AY 2002-03 to 2006-07. A separate income and expenditure statement of each year along with the ledger accounts of the parties to whom payment was made is also placed before us. The major expense incurred by the assessee is in 'Moets Retreat‖ apart from other minor expenditure of Bank Charges, Courier Charger, License Fee, Auditor Fees etc. It is the claim of the assessee that expenses in....
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.... built by him. These assets were built on the property owned by LP Hospitality Pvt. Ltd. and after the tenure of five years the same were handed over to them thus, no enduring benefit was received by the assessee. The assets built in the first year were kitchen equipments of Rs. 50,000/- and construction of swimming pool to the tune of Rs. 9,37,000/- totaling Rs. 9,87,000/- in AY 2002-03 and additions were also made in swimming pool, scooter, sports and gym equipments in AY 2003-04 of Rs. 25,21,026/-, in AY 2004-05 also sports and gym equipments were purchased apart from renovation of the banquet hall provided to the club by the owners totaling to Rs. 21,35,000/-. Thus total expenditure amounting to Rs. 56,43,026/- is revenue expenditure being incurred on the property not owned by the assessee but during the period of operations of the club hence, whole of the expenditure is required to be allowed. We have examined the facts and circumstances of the present case. We find that Moets Retreat Club was made as per supplementary agreement with LP Hospitality who were the owners of the land and building. The infrastructure and the assets built thereon by the assessee have already become ....
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....the course of search 6/12/2005 in reply to question No. 12, question No. 13 and question No. 14 of the assessee has made disclosure under section 132 (4) of the act to stop the assessee disclosed Rs. 4 crores during the course of the statement. Out of the above of the question No. 10 the assessee was shown a loose paper found from his bedroom are as Annexure A -4/1 on which it was written that given in gurugaon during the year April 2005 30/11/2005 of approximately 200 lakhs, the assessee was asked to explain the above paper wherein he replied that the paper contains the details of loans he has given to different persons during the period April 2000 05/02/1930 of November 2005 in gurgaon. The assessee did not disclose the above amount in his return of income. Therefore 26/9/2007 the assessee was asked as to why the above what should not be included in the total income of the assessee. To this the assessee submitted reply on 15/12/2007 stating that the assessee has been forced to give the above statement about the loan of Rs. 2 cross without pointing out any evidences. He submitted that assessee has not given any such loan to anybody. He submitted that there is no name the persons t....
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....32. The arguments of the Ld.AR filed submission as under :- * During the search , the search party put extensive pressure on the appellant to surrender 10 crore of rupees which was later on reduced to 4 crores under the following heads a. On account of loan given in Gurgaon Rs. 2 crores b. On account of suppression in sales Rs. 1 crore c. On account of undisclosed income/ assets Rs. 1 crore. * In order to cover up the surrender of 2 crores appellant was asked to write a piece of paper supplied by the search party and same has been shown as recovered from his bedroom as Annexure A4/1. * The appellant filed an objection to the DI, Investigation vide petition dated 03/03/2006 which has been referred in his submission before AO at page 90 of Vol.1 . In view of the said petition the DI, Investigation relaxed the payment of tax on account of surrendered income. * An affidavit has been filed by the appellant before the AO dated 19/08/2008 confirming the above facts but the same has not been considered and controverted by the AO which is in contravention to the judgment of the Apex Court in the case of Mehta Parekh & Co. Vs. CI....
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....ession by an accused not supported by independent corroboration, benefit of doubt can be extended to the accused. e) Common Cause and Ors Vs. UOI (2017)245 Taxman 214(SC) Loose papers are not books of accounts and have no evidentiary value in view of Section 34 of the Indian Evidence Act without any corroborative material . Referred CBI Vs. V.C.Shukla & ors. 1998(3)SCC 410 f) ACIT Vs. Johari Lal Sodhani ITA No. 145/JP/2013 dated 7-9- 2015 The impugned addition was made by the AO based on the sworn statement of the appellant with reference to seized material found as a result of search and seizure operations. Thus, it is not addition made merely based on admission of the appellant. The admission was made with reference to seized material. There is no allegation that admission was made out of coercion or pressure exercised by the department. The appellant never protested during the course of assessment proceedings. In this background, it was contended that in the absence of any corroborative evidence found during the course of search or otherwise, supporting the statement made, the statement cannot be relied upon for the purpose o....
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....w as to how estimation made by Assessing Officer was arbitrary or unreasonable, additions so made by Assessing Officer by rejecting books of account was justified. 34. In rejoinder, Ld. AR argued that the contents of the document prepared during the course of search have to be read carefully. The assessee put word "approx..‖ i.e. not specific. The period mentioned Apr 05 to 30 Nov '05 clearly shows that this document was forcefully prepared by them as the search took place on 06 Dec 2005 and period for the search year starts from April 2005 and ends at March 2006 therefore assessee was asked to write Nov 2005 to cover the whole period of the year in concern. The Ld. AR argued that neither name of any party was mentioned nor the amount mentioned pertaining to any of the party or address of any person mentioned in the paper. The paper was prepared and the assessee had no option but to sign because the statement started at 8 am in the morning and whole night continued, the assessee appellant had no option to run around at late night but to sign on such paper by taking reasonable precautions to avoid any further argument. No tax was deposited which was required to be paid in t....
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....of the seized paper found during the course of search from the bedroom of the assessee where there is a mention of the single line that the assessee has given loan to various parties in Gurgaon amounting to Rs. 2 crores. It is apparent that the search was conducted on 12/2005 and the assessee submitted a petition on 3/3/2006 before the director of income tax (investigation). Even the cheque taken by the search party of Rs. 1.2 crore from the bank account of the wife of the assessee has not been deposited by the Ld. AO. During the course of the search the single paper stating the above assertion was found. There is no other material found during the course of the search that assessee has given loan to various parties. There is no diary or the dates of payment of the loan or any cheques from the borrowers or demand promissory note of the borrower were found. If the paper seized in the course of the search is look into which is placed at page No. 797 of the paper book it is apparent that paper is bald and does not disclose anything. It shows that it is merely for making the disclosure of Rs. 2 crores. This paper is also required to be looked into with the statement recorded of the ass....
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.... read with Section 153C of the Income Tax Act, 1961 (for brevity, "the Act") was issued to the appellant for the assessment years 2001-2002 to 2007-2008, namely, for seven years. In response to these notices, on 14.10.2008, the appellant requested the department to treat the original returns filed by him as his returns in response to the notices issued under Section 153A read with Section 153 of the Act. Thereafter, on 12.11.2008, the assessee filed revised returns for the assessment year 2001-2002 and for the assessment years 2002-2003 to 2007-2008, the assessee filed revised returns on 16.12.2008. 2.3. Pursuant to the same, the assessment under Section 143(3) read with Section 153A and 153C of the Act was completed by the Assessing Officer based on admission made by the assessee during the time of search and the records seized. The request of the assessee to consider his objections was overturned by the Assessing Officer saying that the materials submitted at the fag end of the assessment could not be scrutinized, as the notings in telephone diaries and loose sheets are unstructured and spread over without reference to time-frame. The Assessing Officer was of the view th....
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....3,31,336 + Rs. 15,05,158 + Rs. 34,37,427). Please explain this? Ans: These are the details of loans given by me to various parties as mentioned in the printouts. This is a separate business carried out by me which was not included in the income-tax returns filed by me. Qn.12: Please explain the source for the total outstanding amounts which are given by you? Ans: The loans totaling to Rs. 52,73,920 given to various parties as per the list were from my undisclosed income. I agree to pay the relevant incometax dues for the above declared undisclosed income.' Sworn statement of Shri Kishore Kumar dt. 10.10.2006 (in Tamil): 'Qn.1: I am showing you Ann/BL/B&D/S-3 and sl.No.5, which are telephone index books wherein amounts given in cash to various persons were found recorded. Whom do they belong to? In whose handwriting it is write? What do these amounts represent? Ans: They belong to me. Signature is mine and the notings relate to loans given by me on various dates. This constitutes my separate finance business. There are no regular books for this. According to the documents shown, as on date outstanding lo....
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....ent to bring to tax undisclosed income, we find has been generous and simple. There appears to be no confusion in the quantification of the tax liability and we uphold the order of the Tribunal. 36. We have carefully produced the facts of that case with the case of the assessee. In the case relied upon by the revenue there were two statements of the assessee in which the facts of disclosure on account of the loan was confirmed. Furthermore, the assessee did not challenge his admission made by him during the course of the search. Has also disclosed that he is carrying on the finance business and he is also earning interest thereon at the rate of 18% on the amount financed. Therefore on this basis the Hon'ble high court confirmed the addition based on the statement. In fact in that particular case the assessee wanted an adjustment of the total disclosure only and not retraction the wall amount disclosed. In the present case as the facts already discussed above the assessee retracted the statement of filing letter before the director of investigation (investigation) and also filing an affidavit before the Ld. assessing officer. During the course of search there were no evidences fo....
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....he rate of 30% Moets catering and Moets Kabab. The 10% of the gross profit ratio was estimated in case of retreat. The assessee declared gross profit of 6.06 percentages in Moets Catering, 27.82% in Moets Kabab and 5.35% in retreat. The Ld. CIT appeal estimated 15%, 27.82% and 8.9% following the order of the coordinate bench in case of concerns . Therefore both the parties are in appeal before us on this issue. The grievance of the assessee appellant is that CIT(A) has estimated the GP arbitrarily without examining the facts of the case in each year. The grievance of the revenue was that GP Rate was rightly adopted by the AO and the ld CIT (A) has reduced the same without any basis. The parties argued on the similar line are before the Ld. CIT appeal and in the order of the Ld. assessing officer. 40. During the course of hearing summary of GP Rate was separately filed and it was argued that in AY 2002-03 the assessee was mostly engaged in settling the club due to which GP Rate of Moets Catering Services has come down while CIT(A) has adopted 15% GP Rate in all the years except AY 2003-04 against GP Rate declared by the assessee @11% to 17% in AYs 2003-04 to 2006-07. In AY 2003-0....