2018 (12) TMI 282

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....ted sale of Rs. 49,40,736/- as no separate addition was made for the source of unaccounted sale. 2. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 95,91,030/- on account of low GP Rate even though the CIT(A) has affirmed the rejection of books of account u/s 145A as the assessee failed to produce the complete set of books of account, the result declared by the assessee on the basis of incomplete books cannot be accepted and thus the book results of the assessee were rightly rejected u/s 145A of the Income Tax Act, 1961. 3. The order of the CIT (A) is erroneous and is not tenable on facts and in law. 4. The appellant craves leave to add, alter or amend any/all....

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....lying GP rate of 11.9% (as declared by the assessee in AY 2009.10) instead of GP rate of 6.16% shown by rejecting book results U/s 145A due to failure to produce complete set of books of account     95,91,030   Assessed Income Rs.     1,69,22,001 4. Being aggrieved by the Assessment order. The assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. DR submitted that the original return of income was filed on 30.10.2017, which was assessed u/s 143(3) on 18.07.2008. During the financial year 2006-07, there has been a search by D.G.C.E.I, which led to detection of evidence of unaccounted sales of 41172.80 kgs. of laminated pouches. In addition unaccounted plas....

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....e Ld. DR further submitted that the addition of unaccounted stock of granules of Rs. 4,78,125 (Excise valuation) was deleted with strange finding which practically amounts to setting aside the issue. The Ld. DR submitted that I.T. authorities can use evidence found by excise authorities but are not bound by their order. Since CIT(A) confirmed legal validity of invoking section 153A and there is apparently no CO or appeal of the assessee in respect of the same, the said issue is not being argued, the appeal be allowed. 6. The Ld. AR submitted that the addition of Rs. 49,40,736 was made by the Assessing Officer by holding it to be unaccounted stock. However, looking to the facts CIT(A) found it to be only unaccounted turnover. It is trite la....

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.... the application of gross profit enhancement @ 11.9% against declared gross profit ratio @ 6.16%. As gross profit ratio of 11.9 is relating to subsequent A.Y. The addition confirmed in earlier paragraph is on account of increase in profit over & above the book results. Accordingly this ground of appeal is partly allowed." From the facts it emerges that the Assessing Officer wrongly observed the unaccounted turnover as unaccounted stock. The CIT(A) has correctly taken the actual facts and taken into account the unaccounted turnover. The decision in case of Balchand Ajit Kumar (supra) and President Industries (supra) are applicable in the present case and thus in case of unaccounted turnover, only addition of profit embedded therein can be m....