9911796707
TMI Blog2013 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... the immediately preceding assessment year i. e. no gross profits. It is settled law that the entire sales cannot be considered as income but only the profit embedded in it is to be considered as income. However, considering the peculiar circumstances of the case and the totality of the facts, lump sum addition made in the present case would meet the ends of justice - Addition be restricted to 10% of the unaccounted sales i.e. Rs.30,53,238/-- Decided partly in favor of Revenue. - ITA No.2784/Ahd/2006 - - - Dated:- 5-9-2013 - Shri G. C. Gupta, VP And Shri Anil Chaturvedi, AM,JJ. For the Appellant : Shri O. P. Batheja, Sr. DR For the Respondent : Shri Tushar P. Hemani, AR ORDER Per Anil Chaturvedi: The appeal is filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the authority of Central Excise Dept. has been confirmed by the first appellate authority of Central Excise." 3. During the course of assessment proceedings the learned AO noted that Central Excise Department had conducted survey on 17- 07-2002 and found shortage of stock valued at Rs.3,05,32,388/-. He has further noted that the Additional Commissioner of Central Excise in his order dated 20-09-2004 has given a finding that the total unaccounted sales were to the tune of Rs.3,05,32,388/-. The learned AO, therefore, considered the books of accounts of the assessee to be incomplete and not reliable and accordingly, rejected the books of accounts u/s 145 of the Act. He further noted that the auditor in the audit report had stated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on such unaccounted sales will be added and not whole unaccounted sales amount. Neither the Assessing Officer nor the appellant has pointed out the percentage of profit earned during the year. Therefore, the Assessing Officer is directed to adopt the average GP rate of last three years for applying GP rate on said unaccounted sales and addition to that extent may be treated as confirmed while rest of the addition is directed to be deleted. Subject to above remark, this ground of appeal is partly allowed." 4. Aggrieved by the aforesaid order of the learned CIT(A), the revenue is now in appeal before us. 5. Before us the learned DR relied on the order of the AO. On the other hand, the learned AR submitted that the entire unaccounted sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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