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TMI Blog2014 (7) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... IB, even without verifying from the sales tax department and made the addition of difference of turnover as income - there is no need to interfere with the order of the Ld. CIT(A) as the entire turnover can not be taken as income of the assessee. Judicial principles on the issue support only estimation of income on the so-called additional turnover. In view of this, we do not find any merit in the Revenue grounds - Decided against Revenue. - ITA.No.1791/Hyd/2012 - - - Dated:- 18-7-2014 - SHRI B. RAMAKOTAIAH AND SMT. ASHA VIJAYARAGHAVAN, JJ. For the Appellant : Mr. D. Sudhakar Rao ORDER Per: B Ramakotaiah: This appeal by Revenue is directed against the Order of the CIT(A)-III, Hyderabad dated 18.10.2012 on the issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the assessee's submissions, Ld. CIT(A) determined the total income at 15% of the additional turnover thereby, confirming addition of ₹ 21,44,94,159/-. The relevant findings of the Ld. CIT(A) in para 6.2 is as under : 6.2. I have considered carefully the facts and evidence. The appellant is not a manufacturer but purchased and sells machines and spare parts manufactured by JCB India Limited. This is evident from the assessment order as well. If the entire addition is made then the gross profit will be almost 60%. Such huge amount of GP for a company whose business was almost coming to a standstill is untenable on market realities and on human probability. There is merit in the contention of the appellant tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontest that they have sold goods and machines only of M/s. JCB India Ltd., and admitted turnover was at ₹ 220.49 crores fully supported by audited books of accounts, purchase bills/sales invoices. It was also further submitted that turnover admitted by the assessee company was fully supported by VAT returns filed before the Sales Tax authorities. In spite of submissions thereon, Ld. CIT(A), however, accepted the alternate contention of the assessee and determined the profit at 15% of the additional turnover of the amount added by the A.O. Considering the facts of the case, we are of the opinion that there is no need to interfere with the order of the Ld. CIT(A) as the entire turnover can not be taken as income of the assessee. Judicia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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