2012 (8) TMI 14

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..... as contended that this investment is to be made in the first month and there is a turnover of remaining period - assessee has also contended before the AO that its business cycle period of one time turnover is 25 to 35 days – Held that:- It would be reasonable to estimate unaccounted initial investment at 1/12th of unaccounted invested capital as against 1/6th thereof estimated by the AO - Revenue’s appeals are partly allowed. - IT(SS)A No.39 to 41/Ahd/2010 - - - Dated:- 1-6-2012 - S/SHRI G.C. GUPTA, AND ANIL CHATURVEDI, JJ. O R D E R PER G.C. GUPTA, VICE-PRESIDENT: These three appeals by Revenue are directed against the orders of the Commissioner of Income-Tax (Appeals)-IV, Ahmedabad dated 30-10-2009 for the assessment y .....

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..... the assessee as detailed in the assessment order passed by the AO. The assessee could not file full details of cash receipts which were deposited in the bank account of the assessee. We find that this matter has come before us in the second round of litigation before the Tribunal. In the first round of litigation before the Tribunal, the undisclosed turnover was determined by the AO at higher figure and the same has been reduced to a justifiable figure in the second round of the assessment by the AO. The AO has recorded reasons for arriving at the reduced figure of undisclosed turnover during the relevant period. In these facts, we hold that the accounts of the assessee were rightly rejected by the AO and the estimation of undisclosed turno .....

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..... o.2 in all the three appeals reads as under:] 2. On the facts and in the circumstances of the case, the ld.CIT(A) has erred in deleting the following additions made on account of unaccounted investment being 1/6th of initial unaccounted capital. Asstt.Year Amount (Rs.) 1998-2000 6,57,228/- 1999-2001 2,67,119/- 2000-2001 3,31,500/- 8. The learned DR submitted that in para-6 of the assessment order, the AO has given reasons for estimating the initial unaccounted capital invested by the assessee at 1/6th of the unaccounted turnover and therefore, the addition on account of unaccounted initial capital was justified. 9. We have considered the submissions of the learne .....

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