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2017 (4) TMI 1625 - ITAT DELHIAssessment u/s 153A - Unexplained investment for purchase of plot and cost of super structure respectively - CIT(A) deleted the addition - HELD THAT:- On perusal of the order of the CIT(A) it is apparent that the addition is deleted for the reason that there is no incriminating material found during the course of search and merely for the reason of the valuation report the addition has been made. The addition in block assessment cannot be made without any evidence unearthing during the search proceedings. DR could not point out any evidence found with respect to above property during the search and none could be gathered from the order of the AO. No infirmity in the order of ld CIT(A) in deleting the addition with respect to difference in valuation of property. In the result the solitary ground of appeal of revenue is dismissed. Addition of gross profit on sales outside the books of account - During the course of search and seizure it was found that stock is short based on trading account for the period 01.04.2001 to 26.02.2002 - HELD THAT:- As undisputed fact that the value of the shortage of the stock has been determined and confirmed by the partner of the assessee. In this confirmation there was a positive affirmation that the rate of the stock as well as the value derived on physical verification of the stock is correct. Therefore there is a shortage of stock of Rs. 1 041 3641/– compared to the stock lying in the books of the assessee. There was no exploration by the assessee about the shortage in the stock therefore the only plausible assumption that can be drawn is that these stock has been sold outside the books of account. Now after the sale of the stock assumed to be out of the books then only plausible way of determining income thereon is applying the rate of gross profit earned by the assessee on that sale. Naturally AO has perused the past history of the assessee and thereafter adopted that rate of 33.8% for working out profit. We do not find any infirmity in the order of the Ld. CIT appeal in confirming the above addition on account of gross profit on sales not recorded in books of account. In the result ground No. 2 of the appeal of the assessee is dismissed.
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