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2019 (2) TMI 1406 - ITAT JAIPURN.P. rate of 5% on unrecorded sales - HELD THAT:- It is pertinent to note that the turnover in question was unaccounted sales of the assessee and, therefore, all other expenditures which are common and below the trading account are already booked by the assessee in the Profit & Loss account against the accounted sales and, therefore, for the purpose of estimating the income on the unaccounted sales the GP would be the income from such unaccounted sales. We find that even if we apply the average of GP for the earlier year including the NP @ 5% for the assessment year 2011-12, it will be around 4.21%. Thus we restrict the addition on account of estimated income in respect of unaccounted sales by taking the NP at 4.21%. The AO is directed to re-compute the addition by considering the NP on unaccounted sales at 4.21%. We may clarify that the earlier order for the assessment year 2011- 12 is not a decision based on the facts but it was only an estimation of income by the A.O. and, therefore, it will not operate either as res judicata or estoppel against the assessee.- Appeal of the assessee is partly allowed. Validity of the order passed under section 271(1)(c) - HELD THAT:- When the AO has not specified the limb for initiation of penalty proceedings under section 271(1)(c), the same is bad in law and accordingly the impugned order passed under section 271(1)(c) is not sustainable in law and liable to be quashed.
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