2016 (5) TMI 1477

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....appeal against the order, dated 18.01.2016, passed by the CIT(A), Jalandhar, for the assessment year 2004-05. The assessee has raised the following grounds of appeal: "1. That the order of the AO as well as that of CIT(A) has against law, facts and circumstances of the present case. 2. That no notice u/s 148 was ever served on the assessee, hence, the reassessment deserves to be ....

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....round nos. 3 & 4, the assessee has challenged the action of the ld. CIT(A), in confirming the addition of Rs. 1,00,000/- on account of undisclosed investment and Rs. 1,32,000/- on account of gross profit earned on estimated profits. 4. The brief facts of the case are that the assessee derives income from manufacturing and sale of diesel engine parts under the name and style of proprietory conce....

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....erefore, treated these transactions to the tune of Rs. 11,01,000/- as unrecorded sale of the assessee pertaining the year under consideration and made an addition of Rs. 1,32,000/- to the returned income of the assessee on account of undisclosed gross profit. Apart from this, another addition of Rs. 9,68,991 (Rs.11,01,000/- - Rs. 1,32,009/-) was also made, on account of unaccounted investment. ....

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....hat where Gross Profit rate is applied, no separate addition on account of purchases outside the books account of account can be made. Thus, the addition of Rs. 1,00,000/- sustained by the ld. CIT(A) should be deleted. 8. On the other hand, the ld. DR relied on the impugned order. 9. Having heard the rival contentions, I am of the considered view that the ld. CIT(A) is not justified in susta....