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TMI Blog2015 (11) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... d the batteries on a wholesale basis. The percent of the profit is much lessor because the prices of the batteries were also fixed. This aspect of the matter has been properly appreciated by the Commissioner (Appeal) as well as by the Income Tax Appellate Tribunal. The order passed by the Income Tax Appellate Tribunal that the goods were purchased on credit basis looking to the statement of accounts, average margin of profit is 3.5 to 4.5 and hence, 6 % net profit fixed for the year 1996-97 and for the Assessment Year 1997-98 is also absolutely reasonable. - Decided against revenue. - T.A. No. 36 of 2007 - - - Dated:- 28-9-2015 - D. N. Patel And Ratnaker Bhengra, JJ. For the Petitioner : Mr. Deepak Roshan, Adv For the Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,91,270/- were mentioned in the books of accounts and, therefore, Assessing officer has added income of ₹ 12,73,429/- as unexplained investment u/s 69 of the Income Tax Act. Moreover, the Assessing Officer calculated 15% gross profit on the aforesaid amount. Against this order, respondent preferred an Appeal before the Commissioner (Appeals) and the Appellate Authority observed that the batteries were not purchased by giving cash amount, but, it was on a credit basis and percentage of profit was reduced to 6% for the assessment year 1997-98. Against this order of CIT (Appeal), an Appeal was preferred by this appellant before the Income Tax Appellate Tribunal and the same was dismissed and the order passed by the CIT (Appeal) has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties and perused the materials available on record including the orders of authorities below and the papers filed in the paper book. The AO in this case has included the entire purchases made as unexplained investment u/s 69 and estimated the income from this business. It is undisputed that the AO has not given the basis on which the entire purchases were treated unexplained. On careful analysis of the orders of the authorities below and the details of statement of accounts of the supplier M/s Radiohms Agencies, Patna placed in the paper book at pages 2 to 15, we find that the supplier in his statement of accounts have confirmed that the goods were sold to the assessee on credit basis. The Ld. CIT (A) while deleting the addition on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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