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TMI Blog2023 (5) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... late Tribunal (for short "the Tribunal") whereby two appeals filed by the revenue against appellant-assessee had been partly allowed. As both these appeals have been filed on identical facts and are substantially having the same questions of law, therefore, they are being disposed of by this common order. 2. The relevant facts sans unnecessary details are that the appellant-assessee had filed returns for the assessment year (for short "A.Y.") 1994-95 and 1995-96 within statutory period. Those returns had been processed under Section 143 (1) (a) of the Act. A search and seizure operation at the residential premises of the partners of the appellant as well as its business premises was conducted on 05.08.1994 and some incriminating documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -95. 5. The first contention as raised by learned counsel for the appellant is that the order passed by the assessing officer making addition of an amount of Rs.8,36,936/- was illegal as while calculating this amount, the fact that all the figures were not pertaining to the relevant assessment year 1994-95 and they also included the purchases of goods made by the sister concern of appellant namely, M/s B.R. Metals, had not been considered. It is revealed from the order passed by assessing officer on 27.03.1997 that a document bearing No.32 that was seized during search, had been taken into consideration and the appellant had been asked to explain the entries as made therein. The appellant had claimed that some figures shown therein were qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... related to purchases not made by it but by its sister concern namely, M/s B.R. Metal. The assessee is proved to have incurred expenditure qua the relevant year but could not offer any explanation about the sources of expenditure or part thereof. The explanation as offered by him that the addition did not pertain to the year under scrutiny and was qua the purchases made by its sister concern had not been found to be satisfactory by the authorities below. As such, under the provisions of Section 69-C of the Act, such amount will certainly be deemed to be income of the assessee for the year 1994-95. Accordingly, we find no reason as to why the order passed by the Tribunal thereby making addition to the tune of Rs.3,50,000/- in the income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of the appellant but by observing that the entire rolling charges could not be taken as deduction as that would include element of profit and expenses also. The CIT (A) had calculated the net profit on the job receipts @25% only which came to be Rs.1,16,134/- and thereby deletion of an amount of Rs.3,48,402/- had been made. The Tribunal had restored addition of this amount on the ground that the appellant had failed to prove that it had incurred any expenses. Learned counsel for the appellant failed to point out any irregularity or illegality in the order as passed by learned Tribunal on this point. The appellant did not dispute that the fact that the entries made in document A-1 were qua the amount received as rolling charges. It coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant to explain that the expenditure shown to have been incurred by it as per the entries made in the seized document, was recorded in the books of account,no fault can be found in the order passed by the Tribunal restoring addition of amount of Rs.3,76,726/-. As such, the order of the Tribunal on this point also deserves to be affirmed. 9. Challenge was further made by the appellant to the order passed by the Tribunal whereby gross profit was calculated @8% of sales shown to be made to the tune of Rs.37,87,735/- in the seized document. The addition of the abovementioned amount had been made by the assessing officer in the income of the appellant by treating the sales as shown in the seized document to be belonging to the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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