TaxTMI 
TaxTMI 
TaxTMI 
2015 (11) TMI 1750
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....claring total income of Rs. 34,140/-. The return was processed u/s 143(1) of the IT Act, 1961 ( in short' The Act') and the case was subsequently, taken up for scrutiny. Earlier, on 24-08-2011, a survey u/s 133A of the Act was conducted at the business premises of the assessee, wherein the physical inventory of birds,chicks and eggs were drawn up. In the course of assessment proceedings, the AO computed the yield of eggs by adopting certain assumptions at Rs. 81,99,120/- eggs in para-6 of the assessment order. Adopting the sale price at Rs. 2.20 per egg, the AO computed the turnover from sale of eggs at Rs. 1,80,38,064/-. The AO observed that the assessee had disclosed only an amount of Rs. 1,26,16,711/- as turnover of eggs in the profit & ....
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....earned CIT(A), Hubli is opposed to law and not on the facts and circumstances of the case. 2. The CIT(A), Hubli erred in directing the computation of the income by applying gross profit at 18% on the said quantum of suppression of sales to the extent of Rs. 54,21,353/- determined when the assessee has not produced any evidence t show that expenses were incurred or suppressed production. 3. For these reasons the order of the CIT(A) may be reversed and that of the AO may be restored. 4. For these and other grounds that may be urged upon, the order of the CIT(A) may be reversed and that assessment order be restored. 5. The assessee craves leave toad, alter, amend or delete any other grounds on or before hearing of the appeal". 4. The....
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.... assessee as per the Profit and Loss account. The assessee has contended in the statement of facts that GP has to be adopt ed on suppr e s s i on of s al e s ins t e ad of taking ent i r e suppression of sales as unaccounted income. Assessee has filed the details of the comparable case of GP on turnover. The details are as mentioned below; "In the cases of MIS. Karthik Poultrjj Farm, Molakalmuru for the A.Y. 2011-12. Comparative cases of Gross Profit declared by the following Poultry farms which are located within vicinity of Molakalmuru Town. 1. M/s. Jatayu Poultry Farm, Kondlahalli, MolakalmuruTq. The said firm has declared the Gross profit @10% and the said firm's turnover is around Rs. 5 crores. 2. Shashidhara Poultry Farm, M og....
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....ome and the estimation of the difference of net profit which was sought to be added and having actually added that difference, the ITO did not have any further jurisdiction to add an additions sum by a way off concealed income in the shape of monies invested in the raw materials. This addition was upheld by the tribunal. The Hon'ble Supreme Court in the case of Anis Ahmed & Sons Vs. CIT(Appeals) Kanpur reported in 297 ITR 441 it was held that the "assessee filed its return for the assessment year 1984-85 declaring certain amount as income as commission agent. However, the AO had t r eated the asse ssee as a t rade r and not as a commission agent and assessed it income accordingly. On remand the AO issued summons to ten traders u/s 13 1....
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....e question whether entire some of undisclosed sales proceeds can be treated as an income, answer by itself in the negative". In view of the facts and the case laws and comparative gross profit detai ls of the simi lar trade, submi t ted by the assessee, the contentions of the AO to consider the entire suppression of sales as unaccounted income of the assessee is not justifiable for the reason that there was element of expenditure incurred in production of the eggs. Hence, it is more appropriate to go for the estimation of the gross profit on entire suppression of sales. The GP details of similar trade i.e Poultry Farms, vary from 9 to 12% and it may be more appropriate to adopt the GP at 18% on the suppression of sales on Rs. 54,21,353/-. ....