2018 (12) TMI 753

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....w.s. 143(3) of the Income Tax Act 1961(In short the 'Act') dated 11.02.2015 framed by ACIT-3(1), Bhopal. 2. The sole ground raised by the Revenue is as under; "On the facts and in the circumstances of the case, whether Ld. CIT(A) was justified in deleting the addition of Rs. 46,11,148/- made by AO on account of Gross Profit which was not offered for taxation." 3. Briefly stated facts as culled out from the records are that the assessee is a partnership firm engaged in the business of sale and purchase of liquor. Return of income declaring income of Rs. 1,21,41,551/- was filed for Assessment Year 2009-10 on 23.09.2009. Assessment u/s 143(3) of the Act was completed on 21.12.2011 assessing income of Rs. 2,98,76,890/-. Subsequen....

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....iation statement of purchase duly filed which indicated that the purchases as shown in the books of account are almost same to the purchases appearing in Form 26AS except for a difference of Rs. 2,82,399/-. 8. We have heard rival contentions and perused the records placed before us. The revenue is in appeal against the finding of Ld.CIT(A) deleting the addition of Rs. 46,11,148/- made by the Ld.A.O by applying the gross profit rate @ 32.97% on the estimated unaccounted sale of liquor at Rs. 1,39,85,890/- which was based on the alleged difference in purchases amounting to Rs. 84,49,668/- appearing in the books of accounts vis-à-vis purchases appearing in Form 26AS for the tax collected at Source. 9. We find that the following re....

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.... sale of liquor would have been Rs. 1,39,85,890/-. Thereafter, he has estimated the gross profit on the estimated sales of Rs. 1,39,85,590/- @ 32.97% and thus made an addition of Rs. 46,11,148 as undisclosed gross profit. The addition of Rs. 46,11, 148/- is thus an estimate of gross profit on estimated sales. The books of accounts have not been rejected u/s 145(2). The addition is based solely upon the difference in purchases as per Form 26AS and as shown in the P & L account. Regarding IMFL, the submission of the appellant that the purchases reflected in .Form 26AS are Rs. 16,78,81,298/- and not Rs. 16,98,48,464/- as taken by the AO in found to be correct. Further, a reference to the Purchase account of IMFL shows that th....