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TMI Blog2014 (8) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... timating the alleged undervaluation of sales at Rs. 4,95,30,000/- and secondly by estimating G.P. thereon at 14.13% and making an addition of Rs. 69,98,589/-. It is submitted that the addition made by the Assessing Officer and confirmed by Hon'ble C.I.T. (Appeals) is purely based on inquiries carried out by Central Excise Officers and with no other materials or evidences against the appellant. It is submitted that estimation of undervaluation of sales of Rs. 4,95,30,000/- as well as consequential addition of Gross Profit thereon of Rs. 69,98,589/- is made without applying mind, which is without any basis or material or evidence and therefore, be deleted. 2. The learned C.I.T. (Appeals) has erred in confirming the addition of Rs. 42,51, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd supporting and decisions placed on record during the course of hearing and not properly appreciating various facts and law in its proper perspective. 6. The order passed by the learned C.I.T. (Appeals) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. 3. The facts of the case as filed by the assessee in the Statement of Facts before the Commissioner of Income Tax (Appeals) reads as under: "1. The Appellant, for the year under consideration, filed Return of Income on 08/05/2009 declaring total income of Rs. 12,90,840/-, which was processed u/s 143(1) of the Act. The case of the appellant was taken up for scrutiny assessment and accordingly notice u/s 143(2) was issued on 27/08/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise officers and show cause notice of the Central Excise officer, the ld. AO proceeded with to carry out assessment proceedings. It was the contention of the ld. AO that as per the investigation made by the Central Excise authorities based on various documentary evidence and statements recorded, the Appellant has undervalued the sale price of frit by showing the average sale price at Rs. 10/- instead of Rs. 25/-. Accordingly, the ld. AO issued a show cause notice on 21/12/2010 asking the Appellant as to why Rs. 4,95,30,000/- should not be taken as undervaluation of sales price (i.e 33,02,000 kgs. X Rs. 15) and G.P. on the same amounting to Rs. 69,98,589/- @ 14.13% should not] be added to the total income of the Appellant. In this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her it was also explained to the ld. AO that the sales value determined by the Central Excise authorities is deeming/notional value for the purpose of levying excise duty which cannot be adopted for the purpose of charging income tax without bringing any record contrary. So far as gross profit ration @ 14.13% adopted by the ld. AO is concerned, the Appellant submitted and explained to the ld. AO that for the year under consideration G.P. ratio was at 9.06% and not 14.13%. However, the ld. AO did not appreciate the submission made by the Appellant and made G.P addition of Rs. 69,98,589/- to the total income of the Appellant. 4. The second issue for which the Id. AO issued a show cause notice is in respect of suppression of sales of Rs. 3,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Appellant has issued parallel bills of Rs. 1,00,000/- and accordingly an amount of Rs. 1,00,000/- remains unaccounted in the books of accounts and therefore G.P. @ 14.13% amounting to Rs. 14,130/- should be added to the total income of the Appellant. In this connection, the Appellant vide letter dated 24/12/2010 submitted and explained to the ld. Assessing Officer that the Appellant has not issued any parallel bills to the parties as well as the said mentioned parties have not made any payment in respect thereof and has denied to receive any goods under such parallel invoices from the Appellant. Therefore, the Appellant requested not to add such gross profit of Rs. 14,130/- on such alleged unaccounted sales of Rs. 1,00,000/-. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... added G.P.@ 14.13%, amounting to Rs. 1,47,075/- on alleged unaccounted sales of Rs. 10,40,875/-." 4. At the outset, at the time of hearing the Authorized Representative of the assessee submitted that all the additions made by the Assessing Officer and confirmed in appeal by the Commissioner of Income Tax (Appeals) are based on the basis of investigation and additions made by the Central Excise Department. Against this, the assessee has filed appeal before Customs Excise & Service Tax Tribunal (CESTAT). The appeal has been heard in July' 2013. There are a batch of appeals and they are being heard turn by turn and the CESTAT Members have stated that they will pass a consolidated order in all the appeals together. In this background, it was t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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