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TMI Blog2022 (3) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... chase of gold by the assessee. Hence, the cost of gold has to be deducted from the sale price and the profit earned by the assessee through the sale should be rightly brought to tax. The appropriate way to determine the profit earned by the assessee is to be based on the gross profit earned in the regular course of business. We find that the gross profit earned by the assessee as per the return was 1.42 per cent. as sustained by CIT (Appeals) with regard to the other transactions entered into by the assessee. Since, there is no dispute about the gross profit, keeping in view the other expenses which have already been debited in the regular books of account, we hereby hold that an amount of 1.9 per cent. of the total transaction would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... twithstanding the above-said facts, there cannot be any addition of ₹ 64,12,500, ₹ 37,23,000 (27,78,500 on January 25, 2012 and ₹ 9,44,500 on February 9, 2012) alleged paid in cash by M/s. KGE to the assessee as the same can only be said to be an advance by the said party to the assessee and, thus, the receipt of amount from M/s. KGE by the applicant under no circumstances be treated as income of the assessee. 4. That the learned Commissioner of Income-tax (Appeals) has also erred in confirming the addition of ₹ 46,03,600, which is against the facts and circumstances of the case, based on unauthenticated documents and also on the merits the addition is not sustainable. 5. That the learned Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial found that at the premises of M/s. Kartika Gold Enterprises is as under : Page No. Name of the party Amount (Rs.) 23 JAIN JEW 27,78,500 24 JAIN JEW 64,12,500 25 JAIN JEW 9,44,500 7. On the basis of these documents, statement of Sh. Gautam Jain, the then director of the company was recorded during post-search enquiries by the Deputy Director of Income-tax (Investigation), Amritsar, in which, he stated that the names as mentioned in the seized documents may belong to the assessee. The Assessing Officer based on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleted. 10. The main plea of the assessee is that how and when and at which point of time, such documents at pages 23 to 25 have been made by that party and, how, the tabulation of figures have been made against the name of the assessee is also not clear and, therefore, no cognizance can be taken on such rough/loose documents found from the premises of M/s. Kartika Gold Enterprises third party . It is not the case of the Department, that there is copy of account of the assessee in the regular books of account of M/s. Kartika Gold Enterprises and reliance is being placed on the judgment of the hon'ble apex court in the case of Common Cause (A Registered Society) v. Union of India [2017] 394 ITR 220 (SC), in which, it has been hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned by the assessee through the sale should be rightly brought to tax. The appropriate way to determine the profit earned by the assessee is to be based on the gross profit earned in the regular course of business. We find that the gross profit earned by the assessee as per the return was 1.42 per cent. as sustained by the learned Commissioner of Income-tax (Appeals) with regard to the other transactions entered into by the assessee. Since, there is no dispute about the gross profit, keeping in view the other expenses which have already been debited in the regular books of account, we hereby hold that an amount of 1.9 per cent. of the total transaction of ₹ 1,47,39,100, i. e., ₹ 2,80,042 would be the correct income evaded by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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