2023 (6) TMI 121

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....- 14. 2. The brief facts of the case is that the assessee is engaged in the manufacturing of ceramic glaze tiles. For the Assessment Year 2013-14, the assessee filed its Return of Income on 03-09-2013 showing income of Rs. 1,23,125/-. The return was taken up for scrutiny assessment. The Assessing Officer had information from Central Excise Department, Rajkot that there was search carried out by the Excise Department at the business premises of the assessee on 18-12-2012. Thereafter a show cause notice dated 26- 06-2015 issued by Pr. Commissioner of Central Excise for clandestine removal of goods and suppression of sales works out to Rs. 3,75,73,113/-. Consequently, inevitable expenses namely Power, Fuel, Gas, etc. on the suppressed sales a....

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....on of profit from unaccounted sales made by the assessee from the clandestine removal of the goods. 6. The Ld. Sr. D.R. Shri B.D. Gupta appearing for the Revenue submitted before us copy of the adjudication order dated 26.03.2016 passed by Pr.Commissioner of Central Excise, Rajkot in the case of the assessee on the clandestine removal of the goods, wherein demanded Central Excise Duty of Rs. 82, 76,966/- and also levied penalty u/s. 11AC of the Central Excise Act, 1944. Further the Ld. Sr. D.R. submitted this order of the Pr. Commissioner, the assessee gone under Sabka Vishwas Scheme 2019 and wherein settled the issue by way of paying appropriate taxes. Thus the addition made by the Assessing Officer in the Income Tax proceedings is liable....

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....ssessing Officer did not have the basis for making additions, the question of percentage of the sales at which stage additions should be made would become redundant. 14. In the result, question is decided against the Revenue. All Tax Appeals are dismissed." 7.1. The Ld. Counsel further submitted that the Hon'ble Jurisdictional High Court judgment is followed by the Co-ordinate Bench ITAT, Rajkot vide its decision dated 10.08.2018 in ITA No. 100/Rjt/2013 & others in the case of Ganga Glazed Tiles Pvt. Ltd. Vs. ACIT wherein deleted the addition made by the Assessing Officer estimating the Gross Profit at 25% and thereby allowed the assessee's appeal. 7.2. Ld. Counsel further submitted that Revenue's further appeal before Hon'ble Gujarat H....