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2016 (2) TMI 561 - AT - Income TaxN.P. rate determination - addition on account of unverifiable purchases - Held that:- There is nothing on record to demonstrate as to what was the turn over and the net profit of the Assessee in immediately preceding and subsequent years which could demonstrate the trend of NP/GP earned by the Assessee in those years. We are further of the view that in the present case, it would not serve the purpose if the matter is remanded back to decide the issue for estimation of income afresh in view of the fact that the matter is almost five years old and would result into prolonging the litigation and delay in attaining finality to the issue and more so even in that case, the income will have to be estimated. Considering the totality of the facts, we are of the view that in the present case, the ends of justice shall be met if the income is estimated by applying the Net Profit Rate of 2.5% as against 2% considered by the CIT(A). We thus direct accordingly. - Decided in favour of revenue Addition under the head "Indirect Expenses" - Held that:- CIT(A) while deleting the addition has noted that since he had directed the adoption of net profits @ 2% further adhoc disallowance would result into double disallowance. Before us, apart from other findings, the observation and finding of CIT(A) of double disallowance has also not been controverted by the Revenue. - Decided in favour of assessee Addition u/s.68 - Held that:- CIT(A) correctly deleted the addition as the appellant had filed a confirmation from the parties wherein the parties confirmed their account with the appellant. Since the opposite party has confirmed to give the said sum to the appellant, the addition made by the AO in this regard is directed to be deleted correctly. - Decided in favour of assessee
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