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TMI Blog2013 (9) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... at the GP declared by the assessee in different years the Tribunal found that the assessee has shown natural GP on the basis of books of account from year to year. The revenue failed to point any special circumstances for estimation of such high profit particularly when during the course of search no incriminating material was found. - Decided against the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account have been rejected in terms of provisions of section 145 (3) of the I.T. Act, 1961. (4) Whether the ITAT has erred in law and on facts in deleting the addition of Rs.2,08,54,333/- made on account of undisclosed stock found at the time of search and addition of Rs.93,77,786/- made of account of extra profit addition in gross profit without appreciating the fact that the estimation of extra profit @ 15% on gross profit over and above profit shown by the assessee was on the basis of specific inding based on the documents found during the course of search and in absence of stock register the position of stock consumed and production yielded could not be related. (5) Whether the Hon'ble Court ITAT has erred in law and on fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice the assessee filed return of income on 21.08.2009 declaring total income at Rs.1,33,27,106/-. Subsequently, notice under section 143 (2) read with section 153A and 153C (1) of the Act dated 31.08.2009 were issued duly served upon the assessee for compliance on 05.10.2009." The A.O. noticed that the regular books of accounts were not found during the course of search and seizure operations conducted on 11.2.2009. The books of accounts were produced by the assessee during the course of assessment proceedings but the same were not supported by the basic documents. The A.O. further noticed that the assessee did not maintain day-to-day books of account. After going through the Trading and P & L account filed along with Auditor's report fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gross Profit rate of 28.48% could not be enhanced 32.75%. In comparable cases GP declared was very low i.e. 9% to 21%. Looking at the GP declared by the assessee in different years the Tribunal found that the assessee has shown natural GP on the basis of books of account from year to year. The revenue failed to point any special circumstances for estimation of such high profit particularly when during the course of search no incriminating material was found. The submission that in CIT v. Shri Pradeep Baranwal, ITA No.107 of 2013 the appeal was entertained on similar questions of law is not a good ground to admit this appeal as the questions framed are not substantial questions of law to admit the appeal. The income tax appeal is dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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