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2015 (9) TMI 447 - AT - Income TaxUnexplained drastic variation in net profit rate - AO mentioned that considering the fact that the sales are not verifiable, it will not be unreasonable to compute the profits at the rate of 5% of the disclosed sales - Held that:- We are of the considered opinion that neither the AO nor the CIT(A) examined the books of accounts. Both of them did not pin point any defects in the books of account. Further selling its products in cash is not against the law. A different percentage of profit cannot be adopted only because the assessee makes cash sale. We, therefore, delete the addition made by the AO - Decided in favour of assessee. Addition in the hands of the other person u/s. 153A /153C - Held that:- It appears that in the case of appellant no assessment was completed either u/s.143 (3) or u/s.147 or under any other provisions of the Act except processing of the return of income u/s.139 (1) of the Act. Since no assessment was made in this case for the assessment years 2005-06 to 2010-11 prior to the assessment u/s.153C of the Act which is the first assessment for the years under consideration, the scope of assessment expands to the original jurisdiction as well as jurisdiction conferred u/s.153A and in other words, the A.O may conclude the assessment based on the findings of the search and also on the basis of any material existing or brought on record of the A.O. In view of the above, the ground raised in this regard is not entertained. - Decided against assessee. Approval of the Joint Commissioner as mandated u/s. 153D is absent and hence the assessment is bad in law as per assessee - Held that:- It is not clear whether the appellant literally means that under the provisions of section 153D prior approval of the Jt. Commissioner is required, whereas in this case prior approval of the Addl. Commissioner of Income Tax is obtained. It is relevant to mention that Section 2(28C) of the Act defines the Jt. Commissioner as a person appointed to be Joint Commissioner of Income-tax or an Addl. Commissioner of Income-tax under sub section 1 of section 117 of the Act. In view of the above, the ground of appellant is hereby dismissed. - Decided against assessee.
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