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TMI Blog2014 (11) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the determination of undisclosed income (i) on account of extra profit on sales allegedly not recorded in the books of accounts of the assessee appellant at Rs. 22,84,832/-; on account of alleged undisclosed cash sales at Rs. 1,92,214/- and; on account of job work receipts allegedly not recorded in the books of account of the assessee at Rs. 1,43,903/- could be made by applying a gross profit rate of Rs. 25% and 48% when in the admitted facts of the assessee's case, he had disclosed in his return of income, and the assessing authority had accepted net profit rate of 15.88% to determine the true income of the assessee appellant arising on similar nature of receipts; 2. Whether, at any rate, the addition of Rs. 5,00,000/- on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its customers on regular basis which were not recorded in the regular books of accounts of the assessee. Only a part of the total sales were being reflected in the regular books of accounts of the assessee which certainly did not form the part of the sale carried out by the assessee and recorded in the duplicate set of books as mentioned above. Hence the amount of Rs. 91,39,327/- would be taken to be the sales of the assessee recorded out of books and the net taxable income would be derived from such sales." The Assessing Officer made an addition of Rs. 2.99 lacs in respect of annexure BK2/1 and an addition of Rs. 1.60 lacs in respect of annexure BK2/24. As noted above, an amount of Rs. 91.39 lacs was taken to be the sales of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de under each head and has observed that the assessee has not produced any evidence to co-relate the entries of job work charges. Moreover, the Tribunal on the second aspect noted that all the sales which have been recorded in annexure BK 1/2 were reflected in the ledger BK 2/20, which indicated that both the books contained trading activities which were carried out without recording in the regular books of account. On this basis, the Tribunal affirmed an addition of Rs. 26.63 lacs as net profit applying a gross profit at the rate of 29.14% on the figure of total sales of Rs. 91.39 lacs. The observations which have been made by the Tribunal are recorded in paragraph 11 of its impugned order, the relevant part of which reads as follows: "N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount to Rs. 5 lacs. The Tribunal observed that the assessee had made sales outside the books of account for which the additional capital was required and hence the addition of Rs. 5 lacs was in order. The present case involves a situation where parallel sets of books were maintained by the assessee. The Assessing Officer as well as the Tribunal observed that the assessee has not placed any evidence on the record to justify that the sales which have been made as recorded in the seized material, were already recorded in the books of account. In view of the facts to which a reference has been made in the earlier part of this judgement, we are of the view that the Assessing Officer has carried a due and proper exercise of a reasonable estima ..... X X X X Extracts X X X X X X X X Extracts X X X X
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