2017 (1) TMI 179

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..... over which has been shown to the 40 times to his capital, while in all other cases it ranges between 2.5 times to 7 times only. - Decided in favour of the assessee.
K. S. Jhaveri And Dinesh Mehta, JJ. For the Appellant : Prakul Khurana For the Respondent : Parinitoo Jain ORDER 1. By way of this appeal, the assessee has challenged the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal of the department and dismissed the appeal of the assessee reversing the order of the CIT (Appeals). 2. The facts of the case are that the assessee has been engaged in the whole sale business of Stones. In the year 1991 excess stock was found than the previous year. The Tribunal while reversing the view taken by the CI .....

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..... e capital. Capital of the appellant is ₹ 2,58,203/- and the returned income of ₹ 1,68,370/- giving approximately 60% return. In view of these facts, none of the cases returned by the A.O. is comparable. In the fitness of thing the appellant's part history is only the comparable. In the fitness of thing the appellant's part history is only the comparison. Apparently the appellant has declared better results but benefit of no breakage is not properly reflected in the trading results. An addition of ₹ 25,000/- is justified to cover the extra benefit of no breakage. Another point is that at the time of survey the excess stock of ₹ 50,000/- was admitted. This indicates that the appellant was carrying on apart of t .....

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..... king the provisions of section 145(2). When the books of account were rejected, then the recourse, is the estimation. The AO has taken the comparative figure and estimated the gross profit rate at 13.33% and made the addition of ₹ 7,26,625/- but the same appears on much higher side. The CIT(A) has already given the benefit of ₹ 50,000/-, which was surrendered by the assessee. (8) By keeping in mind the doctrine of equality, justice and goods conscious, we modify both the orders of lower authorities and restrict the addition to ₹ 4 lacs. Thus, the assessee will get the relief of ₹ 3,26,625/-, which includes ₹ 50,000/- surrendered by the assessee. Thus, the addition is restricted to ₹ 4 lacs regarding the .....

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