TaxTMI 
TaxTMI 
2019 (1) TMI 1939
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....led has already been recovered by the Department. 3. The Ld. DR has accepted this fact and in effect, these stay applications now become infructuous in view of the fact, that the Revenue has recovered the entire demand from the assessee. That the said stay applications has become infructuous, we proceed to hear the appeals of the assessee in ITA Nos. 71 to 73/RPR/2018 on merits. 4. The Ld. AR of the assessee prayed that ITA No. 71/RPR/2018 may be taken as lead case. These cases were heard together and since facts similar, issues common, these appeals are disposed off vide this consolidate order. In ITA No. 71/RPR/2018, the assessee has raised following grounds: "1. In the facts and circumstances of the case and in law, ....
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.... the books of Gulati Udyog. He admitted that the transactions were not recorded in the books of accounts of the assessee and agreed to offer the income on the above transactions. While filing return in response to notice u/s. 148, the assessee furnished justification in its letter dated 27.06.2016 wherein it was admitted by the assessee that the above transactions pertain to unrecorded sale proceeds of Gulati Udyog and on this particular amount the net profit was worked out at 1.54% amounting to Rs. 7,724/- and thus net overall net profit was worked out at Rs. 5,03,001/-. The Assessing Officer did not accept the submissions of the assessee and treated the entire credits/deposits appearing in the above bank account amounting to Rs. 5,26,400/....
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....ner of Income Tax Vs. President Industries in IT Appeal No. 53 of 1999 reported as 258 ITR 0654.(Guj.) ii) CIT Vs. Babulal K. Daga reported as 387 ITR 114 (Guj.) iii) CIT Vs. Hariram Bhambhani reported as 92 CCH 46 (Mum.) iv) Man Mohan Sadani Vs. CIT reported as 304 ITR 52 (MP) That on the basis of these case laws, the Ld. AR argued that it is not the entire sales consideration which was to be brought to tax but only profit embedded in undisclosed sales is only to be added as income. 8. Further, on facts, the Ld. AR of the assessee submitted that all the deposits were made in cheque as well as in cash and details of transactions is placed at page Nos. 12, 13, 19 and 29 of the paper book. The deposits were ma....
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.... to tax. Taking guidance from the bindings judicial pronouncements placed herein above, we are of considered view that only the profit element involved in the undisclosed sales should be taxed. In view of the matter, we have perused the GP% placed before us which is as under: Assessment year GP % 2009-10 7.68% 2010-11 8.40% 2011-12 8.77% The decision of the Hon'ble Supreme Court in the case of Zaveri Diamonds Vs. CIT (supra.) relied by the Ld. CIT(Appeals) is substantially different in facts from that of assessee's case. Since in the case of Zaveri Diamonds Vs. CIT (supra.) the issue was on accommodation entry and disallowance of commission income wherein in the case of the assessee it is with regard to....