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2012 (8) TMI 402 - HC - Income TaxSearch and seizure – suppression of sale and variation in G.P. rate - Tribunal upheld deletion made by CIT(A) on ground that no incriminating material was found during the search on the assessee so as to suggest under-invoicing of sales - documents upon which the AO placed reliance were seized from a different person and not from the assessee - Held that:- Factual findings recorded by CIT(A) and Tribunal have not been sought to be disturbed or impeached by reference to any material or evidence to the contrary. AO has not referred to any material to show that the quality of the hing sold by the assessee was the same as that sold by the members of the group from whom the sale bills were seized during the search carried out simultaneously. In such circumstances, we are unable to hold that the Tribunal was not right in deleting the additions made to the gross profit declared by the assessee – Decided in favour of the assessee. Addition made in respect of alleged Hawala transactions – opinion formed on the basis of some papers found in the course of the search in one of the family members premises – Tribunal while upholding deletion also noted that such a course adopted by the CIT(Appeals) in another case, namely, ACIT vs. Om Prakash Bhatia has been upheld by the Tribunal - Held that:- CIT(Appeals) in the impugned proceedings has no doubt deleted the addition made in respect of Hawala business, but that is only because the Appellate Tribunal for Foreign Exchange had set aside the order passed by the Adjudicating Officer, Enforcement Directorate. These directions of the CIT(Appeals) have been confirmed by the Tribunal in the impugned order and in our opinion rightly so – Decided in favor of assessee.
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