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TMI Blog2016 (3) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... dings, we hold that the no addition can be sustained and thus this ground of appeal is allowed. Also the income declared was more than the net profit rate under Section 44AF of the Act as well as the net profit rate declared in respect of preceding years which have been accepted by the Tribunal. We hold that addition can’t be sustained on merit of the case also. - Decided in favour of assessee - ITA No. 3059/Del/2012 - - - Dated:- 29-1-2016 - SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Sh. Kapil Goel, Adv. For The Respondent : Sh. T. Vasanthan, Sr. DR ORDER PER O.P. KANT, A.M.: The present appeal by the assessee is directed against the order dated 20.04.2012 of lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned Commissioner of Income Tax-A erred in upholding the addition made by the learned Assessing Officer on account of unverifiable purchases ignoring our detailed submissions on the issue (Rs. 3,71,614/-) 4. That on the facts and in the circumstances of the case and in law, learned Commissioner of Income Tax-A erred in upholding the addition made by the learned Assessing Officer on account of unverifiable purchases where learned Assessing Officer further assumed the same to be cover up for suppressed sales resulting in lower GP (Rs. 3,71,614). That the appellant craves leave to add, to amend or modify, rescind, supplement or alter any of the grounds stated herein above, either before or at the time of hearing of this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs were commenced. In the course of the assessment proceedings, the assessee revised its computation of income declaring net taxable income of ₹ 1,95,560/-. However, in the revised computation of income the assessee firm reduced its business turnover to ₹ 26,12,064/- as against the turnover of ₹ 30,30,755/- shown in the original return of income. The assessee explained that in original return of income, the income was declared on estimate basis under Section 44AF of the Act, whereas in the revised computation the turnover of ₹ 26,12,064/- and net profit of ₹ 1,95,560/- was computed on the basis of books of account prepared. During the assessment proceedings, the Assessing Officer noticed cash purchases of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to the assessment years and, therefore, the addition made was without any corresponding/incriminating material and thus, the addition was contrary to the law laid down by the Jurisdictional High Court in the case of Commissioner of Income Tax Vs. RRJ Securities Ltd., ITA No. 164/2015, 175/2015 to 177/2015. In respect of merit of the additions, the learned Authorized Representative submitted that the gross profit rate declared in the return is more than the gross profit rate accepted by the Tribunal in preceding years and, therefore, the disallowance of cash purchases was not warranted. He further submitted that the net profit rate declared by the assessee was more than the net profit of 5% in terms of Section 44AF of the Act. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question have no bearing on the income of the Assessee for the relevant assessment years. 37. As expressly indicated under Section 153C of the Act the assessment or reassessment of income of a person other than a searched person would proceed in accordance with the provisions of Section 153A of the Act. The concluded assessments cannot be interfered with underSection 153A of the Act unless the incriminating material belonging to the Assessee has been seized. 38. As indicated above, in the present case, the documents seized had no relevance or bearing on the income of the Assessee for the relevant assessment years and could not possibly reflect any undisclosed income. This being the undisputed position, no investigation was ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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