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TMI Blog2008 (10) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... rtmental Representative. 3. At the time of hearing, the learned Authorised Representative appearing on behalf of the assessee, Shri N.R. Mertia did not press ground No.2. Ground Nos. 3 and 4 are formal in nature. Thus, ground Nos. 2, 3 and 4 stand dismissed. 4. Thus, ground No. 5 (additional ground) and ground No. 1, only now survive for adjudication. Other grounds of this appeal stand dismissed. 5. First, we will deal with ground No. 5, the additional ground, which relates to the action of the IT Inspector in taking statements during the course of search. This ground is connected with ground No. 1, which relates to trading addition. Therefore, these are being disposed of simultaneously. 6. We have heard the rival submissions and peruse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock as per books of accounts on the date of survey. The assessee did not make any surrender of income but deposited Rs. 35,000 as advance tax. The AO, thus, made the trading addition of Rs. 5,68,437 after rejecting the books of accounts under s. 145(1) and by applying higher GP rate of enhanced sales of sweets, milk and curd. The learned CIT(A) relates the trading addition to Rs. 1,26,224. The Revenue has also taken ground No. 1 in this regard. Ground No. (1) of Revenue's appeal has also been decided simultaneously. 8. We have heard the rival submissions and perused the evidence on record. We have also carefully read the decisions relied before us. 9. After hearing both the parties and after going through the relevant material on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sked to furnish names and addresses of the parties from whom he made purchases of raw materials, which were used for the manufacture of sweets. On the basis of information given by the firm, confirmation letters were obtained from certain parties. It was found that the assessee did not enter all the purchase bills in his books of accounts and some of such purchase bills, obtained from various parties, were not found recorded in the books of accounts of the assessee as under: ----------------------------------------------------------------- S.No. Name & address of party Bill No. & date Amount ----------------------------------------------------------------- 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly, and after applying GP rates in their own way, incomes from the sale of sweets, milk and curd separately, made their respective impugned additions. Since, the statement of Shri Kailash Chand stands excluded and no other evidence which can support the trading addition was found during survey, in view of the fact that the combined CP rate in this year is better than the two preceding years as mentioned above. In our considered opinion, no further addition can be made in this account. As a result, additional ground of appeal is not allowed in its entirety and ground No. 1 of assessee's appeal is allowed whereas ground No. 1 of Revenue's appeal is dismissed. 11. In Revenue's appeal, the only other ground is ground No. 2 which relates t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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