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2022 (12) TMI 1403 - ITAT SURATUnaccounted job work received - CIT(A) restricting the addition made by the AO by estimating the profit @ 20% to 5% as net profit of the suppressed job work charges as income for the year under consideration - HELD THAT:- We find that the Ld. CIT(A) while restricting the addition to the extent of 5% of alleged unaccounted job work receipt followed by the decision of President Industries [1999 (4) TMI 8 - GUJARAT HIGH COURT] wherein it was held that “on the issue of suppression of said consideration only the addition to the extent of profit element may be made”. We are also of the view that wherein there is no fool proof of evidence of unaccounted sales or independent material to substantiate such allegation, only profit element to avoid the possibility of revenue leakage is sufficient to meet the ends of justice and not the substantial part of the disputed transaction. Therefore, we are not inclined to enhance the disallowance of alleged unaccounted job work receipt by assessee. Hence, ground No.1 to 4 raised by Revenue are dismissed. Disallowance in rectification order u/s 154 passed by Ld. CIT(A) in granting credit of additional income declared by assessee while filing return of income - CIT(A) on filing application under section 154 of the Act by assessee on account of additional business income, granted credit of such additional income. The ld CIT(A) thus, granted set of income, which was voluntarily offered by the assessee in response to notice under section 153A, to which the assessee is legally eligible. Thus, we do find any reasons for interference in the order passed by Ld. CIT(A). Hence, ground No.5 & 6 of Revenue’s appeal is dismissed.
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