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TMI Blog2013 (2) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... for the AO to make scrutiny of the account incurred on the purchase made by the assessee – these expenses should be allowed – Against the revenue. Unaccounted cash – AO found that payment of Rs.80,000/-, was not entered into the books of account and accordingly treated as unaccounted payment and addition was accordingly made - Held that:- Once separate addition is made on account of higher gross profit, the undisclosed payment made by the assessee outside the books of account should be telescoped against the unaccounted income earned on account of higher gross profit rate – No addition should be made - Against the revenue. - TAX APPEAL No. 1980 of 2010 - - - Dated:- 17-1-2012 - MR. AKIL KURESHI AND MS SONIA GOKANI JJ. Appearanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the order of the Income Tax Appellate Tribunal is contrary to the evidence and material on the record of the case and, hence perverse or not? 2. Heard learned Senior Counsel Mr. M.R.Bhatt and examined the papers. 3. First issue relates to reduction of the gross profit rate of 8.50% by the Tribunal instead of 9.54% applied by the Assessing Officer. 4. It emerges from the record that the Tribunal noted the fact that during the course of Survey, cash and stock found was lesser as compared to the book result. There were various discrepancies noticed during the survey and it was also admitted by one of the employees of the assessee company. With regard to the unaccounted income of the group so much so t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame was based on the material made available to the Tribunal and after giving detailed reasonings it has so done it. It would be appropriate to quote the same. 9. As regards the discrepancy in the cash book of Rs.3,74,687/- we may note that it was not excessive cash found during the course of survey. It was a negative balance for which no substantive addition should have been made against the assessee. Regarding disallowance of brokerage, travelling expenses and disallowance of HRA, we are of the view that these are part of the book results of the assessee and when book results have been rejected and gross profit rate is applied, no further addition for disallowance of the expenditure should have been made separately. The Hon'ble Allahab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired to be made. These grounds of appeal of the assessee are accordingly allowed. 7. The Tribunal has rightly held that once there is a separate addition already made on account of higher gross profit, the Assessing Officer could not have added this amount by way of a separate addition. It justifiably set aside the order of the Assessing Officer of adding the sum of Rs.80,000/- for having based this conclusion on the available material and for there being no infirmity in the same, the issue required no further consideration. 8. Resultantly, it can be held that this Tax Appeal which proposed no question of law, much less any substantial question of law, deserves rejection and is, therefore, dismissed. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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