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TMI Blog2018 (4) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... er, legally, he could not have added the entire difference between the estimated and declared sales as income; only the profit element ought to have been brought to tax. While the estimate of sales does not call for any interference, the reasonability of estimate of profit has to be judged in the light of comparable cases. - Decided against revenue - I.T.A. No. 36/2018 - - - Dated:- 24-4-2018 - Sanjay Yadav And Ashok Kumar Joshi, JJ. Shri D.P.S. Bhadoriya, learned counsel for the appellant None for the respondent ORDER Heard on admission. Challenge is to an order dated 31/07/2017 passed by Income Tax Appellate Tribunal, Bench at Agra; whereby the Tribunal while affirming the order dated 13/01/2017 by the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estimated and declared sales as income, only the profit element ought to have been brought to tax by adjudging it in the light of comparable cases. Accordingly, directed for application of net profit rate of 1.5% on the estimated sales of ₹ 12,03,73,771/- which worked out to ₹ 18,05,606/- against the net profit of ₹ 8,36,315/- disclosed by the assessee. As regard to addition of ₹ 71,98,000/- on account of unexplained unsecured loan under Section 68 of Income Tax Act, Commissioner of Income Tax (Appeal) while admitting additional evidence under Rule 46A(3) of the Income Tax Rules after relying on the decision in CIT Vs. Shiya Dawoodi Bohara Jamat [(2008) 304 ITR 336 (MP)] and CIT Vs. Gani Bhai Wahab Bhao [(1998) 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee by a/c payee cheques, the details of which are placed on record. No further details or evidence were sought from the three creditors. All the facts were duly stated by the three creditors in their affidavits filed before me. The Assessing Officer has not controverted the above statement and the affidavits. In my view, the appellant has discharged his onus of proof regarding the identity, creditorworthiness and genuineness of the transaction. There is no evidence against the creditors to prove that they were providing accommodation entries. Therefore, mere deposit of money by the creditor on the same day does not establish that the loan is not genuine. In Leeladhar Khodiyar v. Asst. CIT (2013) 22 ITJ 601(Trib.-,Jabalpur), whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comparable case, or the past history of the case. Further, legally, he could not have added the entire difference between the estimated and declared sales as income; only the profit element ought to have been brought to tax. While the estimate of sales does not call for any interference, the reasonability of estimate of profit has to be judged in the light of comparable cases. Though it is contended on behalf of the appellant that the Commissioner of Income Tax (Appeal) and the Tribunal grossly erred in construing the facts in right perspective. However, no material is on record to doubt the findings by Commissioner of Income Tax (Appeal) and the Tribunal, as would give rise to any substantial question of law. Consequently, appeal f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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