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TMI Blog2017 (1) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... o not accept the contention of the Id. D/R that this report should not be believed. However, considering the facts and said report, we hold that it would be fair and reasonable if the weight gain is adopted at 7.5% in the case of appellant. The AO has prepared the calculation of undisclosed income of assessment order in a table taking the weight gain at 15%. We hereby direct the AO to recalculate the undisclosed income by adopting 7.5% in place of 15% in the said table. See Commissioner of Income Tax, Jaipur vs. Smt. Radha Bajaj [2016 (9) TMI 1390 - RAJASTHAN HIGH COURT] - Decided in favour of the assessee - D. B. Income Tax Appeal No. 49 / 2003 - - - Dated:- 3-1-2017 - K. S. Jhaveri And Vinit Kumar Mathur, JJ. For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s belonging to SOMANI GROUP. In this Group, search under Section 132 of the Income Tax Act, 1961 was mounted on 12.01.1999. The assessee is engaged in the business of manufacturing and dealing in soaps in the brand name of MAHARAJA . As on the date of search, the firm was constituted by three partners namely Shri Jagdish Somani, Shri Balkishan Somani Smt. Ramswaroopidevi having 1/3 share in profit/losses. Search under Section 132 was conducted on 12.01.1999 and concluded on 13.01.1999 wherein various assets were found and seized. Notice under Section 158 BC was issued on 29.02.2000 and served on the assessee on 03.03.2000, requiring the assessee to file return of income for the block period within 30 days of the service of the said notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the assessee on account of interest income on undisclosed advances of ₹ 42,34,000/- Asstt. Year Undisclosed income 92-93 ₹ 8,81,016/- 93-94 ₹ 10,40,675/- 94-95 ₹ 10,14,844/- 95-96 ₹ 9,91,147/- 96-97 ₹ 13,18,900/- ₹ 3,60,000/- 97-98 ₹ 11,40,088/- ₹ 16,37,440/- 98-99 (i.e. 1.4.97 to 17.9.97) ₹ 3,45,475/- ₹ 9,31,480/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the loan was advanced and the interest income was undisclosed? (4) Whether in the facts and circumstances of the case, the ITAT was justified in setting aside the interest income when the limited dispute before it that it should be taxed on the accrual or receipt basis ? (5) Whether in the facts and circumstances of the case, when the assessee is maintaining books of accounts on mercantile basis then the interest should be calculated on accrual or receipt basis ? 3.1 While admitting the appeal, no substantial question of law was framed and cross-objections have also been preferred by the assessee. 4. We have heard the learned counsel for the parties. 5. Mr. Mathur has contended that the Assessing Officer afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of process and production. We do not accept the contention of the Id. D/R that this report should not be believed. However, considering the facts and said report, we hold that it would be fair and reasonable if the weight gain is adopted at 7.5% in the case of appellant. The AO has prepared the calculation of undisclosed income at page 19 of assessment order in a table taking the weight gain at 15%. We hereby direct the AO to recalculate the undisclosed income by adopting 7.5% in place of 15% in the said table. We hold accordingly. 8. In our view, the view taken by the Tribunal is just and proper and no interference is called for. The substantial questions which have been raised, in our opinion, are appreciation of evidence of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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