2018 (12) TMI 282

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....cts in directing the A.O. to take the GP of unaccounted 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 l....

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....6 4,78,125     49,40,736 49,40,736 54,18,861 Add: Addition by applying 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, whic....

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....unted investment has to be made by the CIT(A). The Ld. DR submitted that excise valuation is lower than sales value. The 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 ....

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....ave held in earlier paragraph that the appellant is found engaged in unaccounted turnover outside books of accounts. However, I do not approve 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 Pr....