TaxTMI 
TaxTMI 
2016 (5) TMI 1506
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....erein the Hon'ble Tribunal vide order dated 17.02.2016 had disposed off similar issues and, therefore, the same may be disposed off accordingly. 4. The learned AR in this respect submitted that Hon'ble Tribunal while disposing of appeals of assessee and Revenue had determined the Gross Profit on costs of sales and had made detailed calculations and in this respect our attention was invited to the operative part of the Tribunal Order as contained in para 22 onwards. The learned AR submitted that on the basis of which the Hon'ble Tribunal had determined the taxable income of assessee on the same basis, he has prepared charts showing the calculation of profits to be taxed for the two years and he filed the same and a copy of which was provided to learned DR. 5. The learned DR conceded that if the issue is covered by the earlier order of Tribunal then he has no objection if the Hon'ble Tribunal decides the similar issues as in the earlier years. 6. We have heard the rival parties and have gone through the material placed on record. We find that the facts and circumstances of the present appeals and those decided by Tribunal vide its order dated 17.02.2016 are similar. For the sak....
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....e case of the assessee for the assessment year 2009-10, an AIR information of cash deposits of Rs. 16,52,000/- in account no. 715-1-0137597 with Standard Chartered Bank, Jalandhar was received. Subsequently vide letter dated 22.12/2011 the assessee admitted that the deposits in the said bank account were unaccounted and were the proceeds of unaccounted sales. Subsequently, assessment was completed for the AY 2009-10 by utilising this AIR information & addition amounting to Rs. 2,55,92,341/- was done. 2. From the bank statement obtained from the bank of the same account, it is seen that cash amounting to Rs. 5,45,980/- has been deposited for AY 2008-09 also. Since, it has already been admitted by the assessee that the deposits in this bank account is actually unaccounted sale proceeds, I have reason to believe that income chargeable to tax on account of unaccounted sales, has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961. Issue notice u/s 148." 24. From the above reasons recorded, we find that the case of the assessee was reopened on account of an AIR information regarding the factum that the assessee had deposited certain cash in his bank ac....
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.... sale proceeds, therefore, he made the trading addition ignoring cash deposit as he had already observed that the cash deposit represented unaccounted sale proceeds. Therefore, we do not see any force in the arguments of the ld. counsel that since he had not made the addition of cash deposit, no other addition can be made. In view of the above, additional ground taken by the assessee is dismissed. 25. As regards the legal ground taken by the assessee in three appeals regarding rejection of books of account, we find that the AO on the basis of gross profit ratio declared by the assessee and on the basis of cash deposit in the bank account had held the sale figures not to be reliable but he had accepted all other figures of trading and profit & loss account and rather he has calculated the suppression in gross profit on the basis of opening and closing stock and on the basis of purchases as declared by the assessee. 26. The contention of the ld. counsel that since the AO had not rejected the books of account, therefore, he should not have estimated the income of the assessee by applying gross profit ratio whereas we find that the AO has clearly established suppression of sales ....
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.... claim of the assessee as genuine and therefore, he rightly allowed the relief to the assessee on account of free distribution of books/discount allowed by assessee. This is the only grievance raised by the Revenue but which in our opinion has been rightly allowed by ld. CIT(A) as AO did not raise any objections on merits during remand proceedings. In view of the above grounds of appeal taken by Revenue are dismissed. 28. Now coming to appeals frilled by assessee. The ld. CIT(A) calculated suppression in gross profits by applying the highest Gross Profit ratio. We are in agreement with findings of the ld. CIT(A) so far as method of calculation of suppression in gross profit is concerned, however, we are not in agreement with the ld. CIT(A) where he applied the highest percentage of gross profit ratio out of three percentages worked out by him. We find that the results arrived at by applying gross profit ratio relied upon by ld. CIT(A), do not depict a fair and true picture as by applying exorbitant rate of gross profit, the figures arrived at by the ld. CIT(A) are absurd. The correct gross profit ratio worked out by the ld. CIT(A) on the basis of gross discount received by the a....
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....43% of goods on which he did not get any discount. 84.57 cost of sales of goods Rs. 1,65,55,114/- 15.43% cost of sales of goods Rs. 30,20,520/- Total cost of sales Rs. 1,95,75,634/- Gross profit @ 25.17% on cost of sales of Rs. 1,65,55,114/- Rs. 4166922/- Gross profit @15.43% on cost of sales of Rs. 30,20,520/- Rs. 4,66,066/- Total gross profit earned by the assessee Rs. 46,32,988/- Less: Discount allowed by the assessee Rs. 6025710/- Balance gross profit (-) Rs. 13,92,721/- Less: Gross profit declared by the assessee Rs. 3,36,758/- Undisclosed gross profit earned by the assessee Rs. Nil as G.P declared by assessee is more than figure calculated above. Asst. Year 2009-10 Total purchases made by the assessee Rs. 7,11,65,750/- Purchases on which no discount was received Rs. 1,14,55,914/- (16.1%) Purchases on which assessee got discount Rs. 5,97,09,836/- Ranging from 10% to 50% (83.9%) Total purchases accounted for in the Books of account Rs. 7,11,65,750/- Total cost of sales as worked out by the Assessing Officer in the assessment order Rs. 6,34,43,718/- In....
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....als the Revenue is aggrieved with the deletion made by learned CIT(A) on account of deduction for free distribution of books. However, we find that learned CIT(A) had allowed relief on account of free distribution of books after getting remand report from Assessing Officer and in earlier years we had already dismissed the appeals filed by Revenue on similar grounds and therefore, the appeals filed by Revenue in the present years are also dismissed. 8. As regards the appeals filed by assessee following the earlier order of Tribunal the calculation of taxable income is worked out as under: For Asst. Year 2011-12 Particulars Amount (Rs.) Total Purchases made by the Assessee 78358954 Purchases on which no discount was received 16588976 (21.2%) Purchases on which assessee got discount ranging from 10% to 50% 61769978 (78.8%) Total Purchases accounted for in the Books of accounts 78358954 Total cost of sales as worked out by the CIT(A) in his order 83424504 In the absence of any quantitative details, it is presumed that out of goods valuing at Rs. 83424504/-, the assessee has sold 78.80% of goods on which he got discount and 21.2% of goods on....