TaxTMI 
TaxTMI 
2024 (7) TMI 791
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....passed by the Income-Tax Appellate Tribunal, Rajkot (for short 'the Tribunal') in ITA No. 94/Rjt/2017 for Assessment Year 2012-13 : "A. Whether on the facts of the case as well as in law, the learned Income Tax Appellate Tribunal was justified in confirming the order passed by CIT (A) deleting the addition of Rs. 1,00,08,317/- made on account of undisclosed investment in 29315 boxes of goods made by the assessee which were detected during the course of search by Excise Department? B. Whether on the facts of the case as well as in law, the learned Income Tax Appellate Tribunal was justified in confirming the order passed by CIT (A) without considering the fact that during the course of search by excise Department, the asses....
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....r Section 69C of the Act, observing as under : "5.2 On careful consideration, I find that the issue is squarely covered by the Hon'ble Gujarat High Court judgments and Rajkot ITAT decision (relied upon by the appellant) in appellant's favour. The Hon'ble Gujarat High Court in case of President Industries (258 ITR 654) held that in case of undisclosed sales, only profit margin should be taxed and in the absence of any specific finding of any investment routed in undisclosed sales, the undisclosed investment cannot be taxed only on assumption basis. Similar view was expressed by the Hon'ble Gujarat High Court in subsequent judgments in case of Gurubachhan Singh J. Juneja (302 ITR 63). Samir Synthetic Mill (324 ITR 410....
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....ent. I therefore, direct the A.O. to restrict the addition to the extent of gross profit of Rs. 14,24,533/- and delete the balance addition of Rs. 1,00,08,317/- made by him on the ground of undisclosed investments. This ground of appeal is partly allowed. 5.3 The AR of the appellant has submitted during the course of hearing that the appellant has preferred an appeal against the order of the Central Excise Department and the said appeal is pending. In view of this, the AR of the appellant requested that whenever the matter is finalized by the Excise Department, its consequential effect should be given by the A.O., if required, in respect of addition sustained in this order. This contention of the appellant is reasonable and hence a....
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....adopted in such cases. In the case of CIT vs. Leo Formulations Pvt. Ltd. 48 taxmann.com 328, the Assessing Officer observed that the assessee had not recorded consumption of different raw materials correctly in the books of account and had suppressed production. Accordingly, the Assessing Officer estimated unaccounted sales of assessee at 40% of the turnover. The Gujarat High Court held that the contention of the Revenue that entire excess consumption should be added to the income of the assessee could not be accepted as the Assessing Officer himself has recorded in the assessment order that there has been unaccounted purchases which needed to be considered against unaccounted sales and further excess consumption of raw materials c....