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2014 (3) TMI 434 - DELHI HIGH COURTRectification of order - Validity of order passed u/s 245D(6B) of the Act - Revenue was of the view that the closing stock of unsold land was undervalued while estimating the income of the assessee in the order passed by the ITSC - Held that:- The ITSC has followed a particular method of computing the income of the assessee which required to be settled - the method is that there should be a flat rate of net profit, expressed as a percentage of the gross receipts of the assessee - When a flat rate of profit is applied to the gross turn-over and the assessment of the income of the assessee is made in the manner akin to a best judgment assessment, there is no scope for making any separate addition for undervaluation of stock, disallowance of expenditure, other additions under Section 68 etc. - The flat rate assessment as a percentage of the gross turn-over takes care of all possible omissions and if this method of estimating the concealed income of the assessee is adopted by the ITSC, there is no justification for separately making any addition towards alleged undervaluation of the stock. The fact that there was a difference of opinion between the members of the ITSC while examining the application of the Revenue shows that the matter is in any case not free from debate which takes it out of the purview of the provisions of Section 245D (6B) of the Act – Decided against Revenue.
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