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2016 (12) TMI 747 - AT - Income TaxAddition under section 69C - unexplained expenditure - Held that:- Assessing Officer has given ample opportunity to the assessee to explain this issue but no evidence was filed before Assessing Officer at assessment stage. The assessee also failed to explain the relevance of the additional evidence because in the certificate of Secretary, Agriculture Market Produce Committee, Solan, it is nowhere clarified as to how the contents of the same were relevant to the matter in issue. It merely explains the identification of firms' names instead of writing full name. Since assessee failed to explain as to how the additional evidence was relevant to the matter in issue, we are of the view ld. CIT (Appeals) correctly refused to admit the same at appellate stage. However, considering the totality of the above findings, it is clear that addition is wholly unjustified in the matter. We, therefore, set aside the orders of authorities below and delete the addition of ₹ 8,11,490/-. This ground of appeal of the assessee to that extent is allowed. Addition under section 69C - Held that:- In the light of provisions of Section 292C, it is clear that assessee has made purchases of construction material which belong to the business of the assessee and in the absence of any plausible explanation, the authorities below were justified in making the addition under section 69C of the Act. No infirmity have been pointed out in the orders of authorities below. We, therefore, do not find any merit in this ground of appeal of the assessee. Addition on account of estimation of net profit - Held that:- Hon'ble Punjab and Haryana High Court in the case of CIT vs. K.S. Bhatia [2002 (9) TMI 8 - PUNJAB AND HARYANA High Court] held that, "Mere fact that the profits were low compared to the earlier years was not a circumstance or material which could justify an estimate in the circumstances of the case". As noted above, since the assessee has already surrendered additional income of ₹ 25 lacs in assessment year under appeal and no other reasons have been given by the Assessing Officer for estimating higher profit rate. Therefore, mere low NP rate shown in assessment year under appeal by itself is no ground to make addition of this nature against the assessee. We, therefore, do not justify the orders of authorities below in making and upholding this addition. We, accordingly, set aside the orders of authorities below and delete the addition
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