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2018 (10) TMI 1746 - AT - Income TaxAddition made towards estimation of G.P. - suppressed turnover - HELD THAT:- There is no error in the estimation of income of the assessee on the basis of the seized records. The estimation of income by the Assessing Officer is based on the documents found during the search and statement recorded during the course of search. Being so, the Assessing Officer is completely justified in adopting those figures for the whole year and for the next year. For this proposition, reliance is placed on the judgment of the Jurisdictional High Court in the case of Travancore Diagnostics P. Ltd. vs. ACIT [2016 (11) TMI 76 - KERALA HIGH COURT] wherein it was held that when suppression had been found from the documents and the statement on record, the Assessing Officer was completely justified in adopting those figures for the whole year and for the next year which was based on sound rationale, since from the statement on behalf of the assessee, the suppression was found to be continued. In view of the uncontroverted and admitted statement given on behalf of the assessee u/s. 133A and the documents impounded during the survey, which were also virtually admitted by the assessee, there was no error in the order of the Tribunal in accepting the materials on record in order to arrive at an assessment. - Decided in favour of assessee Addition towards valuation of closing stock - firm’s business discontinued on account of closure of the business - HELD THAT:- In this case, the closing stock was estimated by applying GP rate at 22% in the assessment year under consideration. Since we have confirmed the estimation of income by applying GP rate at 22%, the closing stock determined by the Assessing Officer is to be confirmed. Accordingly, we find no infirmity in the order of the lower authorities and the same is confirmed. Thus, this ground of appeal of the assessee is dismissed. The appeal of the assessee is dismissed. Undisclosed income on estimate sales - HELD THAT:- Estimation of income for these assessment years on the basis of the seized records found during the search in the year relevant to the AY 2008-09 is justified as the assessee has followed uniform system of suppression of sales. This ground of appeal of the Revenue is allowed for all the assessment years.
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