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TMI Blog2011 (12) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer had taken undisclosed investment for making regularly recorded purchases at Rs.5,16,460/-. The difference is apparent. This discrepancy in the order of Assessing Officer cannot be explained. Further the Assessing Officer has accepted the stand of the respondent that the cassettes were supplied on credit and sales were made in cash, to reduce the element of investment. - With regard to the GP rate, the Assessing Officer in the assessment order had recorded that comparable GP in the similar trades was Rs.2.5%. It is noticeable that no details or particular other dealer were, stated. How the Assessing Officer got this figure is difficult to fathom. It is quite clear that respondent was not in a position to make heavy investments as the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s profit on the said sale at 1.86% as per seized document A-81, A-85, A-86 etc. In addition, the respondent had also declared undisclosed sale of Rs.11,73,128/- in respect of decks as per A- 80 @ 9.9% for the assessment year 1996-1997. 4. During the course of the assessment proceedings on 11.10.2000, Dipak Sethi partner of the respondent had appeared along with his Chartered Accountant/authorized representative and had furnished the details of the purchase price and sale price of the audio cassettes of different types, which were prevalent in the assessment year 1996-1997. He had further stated that they used to purchase audio recorded cassettes from Super Cassettes Industries Limited at almost Rs.5.50 more in respect of recorded/declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition to the extent of Rs.2,65,481/- on expenditure was upheld. 8. Accordingly, ultimately additions made in the case of the respondent are as under:- 1. Rs.3,76,976/- on account of investment made for purchase of undisclosed sales. 2. Rs. 2,20,000/- (approx.) as addition made on account of GP rate of 2% on the undisclosed sales. 3. Rs.2,65,481/- on account of expenses on undisclosed sales. 9. After hearing counsel for the parties, we frame the following substantial question of law:- (i) Whether the order passed by the Tribunal dated 10.08.2006 is perverse and contrary to material in evidence on record? 10. Learned counsel for the appellant had rightly contended that the Tribunal had laid undue emphasis and stress on the retracte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omes to the figure of Rs.15,92,601/-. 13. It is noticeable that the Assessing Officer did not take into account the fact that undisclosed investment made in one year is not distinct or separate and can be accounted/discounted for in the next years. It is noticeable that the respondent was doing business in the wholesale market and the trade turnover was extremely high. The purchases and sales were in quick succession. Further it is noticed that the respondent had disclosed income from undisclosed trade and this fact should have been taken into consideration for computing and calculating undisclosed investment. The Assessing Officer had made addition of Rs.7,53,953/- on account of investment made in purchase of undisclosed stock. For the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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