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TMI Blog2023 (2) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit offered by the assessee in the last three years and has also taken into consideration that purchases made by the assessee are only made from Bharat Petroleum Ltd. and the ld. Assessing Officer has not disputed the said purchases and since the sale prices are not in control of the assessee and they have to be kept as per the rates decided by the oil marketing companies, the margin of profit can only be subject to tax. Thus, since the CIT(A) has applied highest of the net profit rate i.e., 3.90 % on the alleged undisclosed sales, we do not find any reason to interfere in the said finding. Thus, the effective ground of appeal raised by the revenue stands dismissed. - I.T.A. No. 111/GTY/2020 - - - Dated:- 20-2-2023 - SHRI RAJPAL YAD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosed sales as turnover and estimated income @3.9% on the under reported sales. 4. The Appellant craves the leave to add/modify/alter any of the ground during the course of hearing /pendency of appeal. 3. Brief facts of the case are that the assessee is an individual and engaged in the business of running a petrol pump. E-return for the Assessment Year 2017-18 was filed on 28/03/2018 declaring total income f Rs.13,26,310/-. Case manually selected for compulsory scrutiny followed by notice u/s 143(2) 142(1) of the Act. During the course of assessment proceedings, the ld. Assessing Officer referred to the survey proceedings carried out u/s 133A of the Act, conducted at the business premises of the assessee on 01/03/2017. Based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition only to the extent of net profit element embedded in the alleged undisclosed sale. We notice that the ld. Assessing Officer based on the seized records impounded during the course of survey, made the addition for undisclosed sale of Rs.2,39,42,814/-. The ld. CIT(A) after making a detailed discussion and also referring to various judgments including that of Hon ble Gujarat High Court in the case of CIT vs. President Industries (2002) 258 ITR 654, came to the conclusion that since the purchases are not in dispute, only the net profit on the said undisclosed sales can be subjected to tax and for arriving at this conclusion, the ld. CIT(A) observed as follows:- It is noted that the Appellant during the above assessment year was ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6366340 Turnover as per the books 88084206 145579492 163040120 Gross profit rate 2.90 2.85 3.90 Considering the higher profit rate of 3.90%, the profit on the outside books sales made by the Appellant for the assessment year 2017-18is being estimated at Rs 9,33,770/-(3.90% of outside books sales of Rs 2,39,42,814/-). In view of the above discussion, the addition made by the AO to the above extent is sustained and the balance addition made of Rs.2,30,09,044/- (i.e., Rs.2,39,42,814/- less Rs.9,33,770/-) is, hereby, deleted. The above ground of appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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