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2015 (9) TMI 72 - HC - Income TaxN.P. estimation - Tribunal applied net profit ratio of 5.2% - Held that:- We are in complete agreement with the view taken by the learned tribunal as well as learned CIT(A). When the evidences of total expenditure or purchase were not available with the revenue and consequently the assessee as well as A.O. both decided to determine the income by applying a reasonable estimate of profit and that estimation was found very near to the income offered by the assessee, the learned tribunal has rightly dismissed the appeals preferred by the revenue. - Decided against revenue. Undisclosed closing stock added by the Assessing Officer - CIT(A) deleted addition - Held that:- We are of the view that learned CIT(A) has correctly appreciated the facts of the case and held that in the absence of any stock found at the time of search there was no justification to tax unaccounted stock in the hands of the assessee. We have also noted that the AO was not definite about the said stock; hence, no authentic finding was given but it was held by him that there might be stock in godown. We, therefore, hold that in such a situation learned CIT(A) was correct in deleting the addition which according to him was based upon conjecture only.- Decided against revenue. Application of provisions of Section 40(A)(3) of the Act becomes infructuous, as once the question No.1 is held against the revenue and the judgement and order passed by the learned tribunal applying net profit ratio of 5.2% for respective Assessment Years has been confirmed, there is no question of further making any addition under section 40(A)3
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