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2019 (4) TMI 55 - AT - Income TaxEstimation of GP - rejection of books of account - addition on account of low gross profit - restricting the GP rate @ 5% to NP rate @ 2.3% by CIT(A) - HELD THAT:- CIT(A) observed that in assessee’s own case for the assessment year 2007-08 had approved application of net profit rate @3.3% for estimation when there was evidence of unrecorded transactions. Considering other factors, Ld. CIT(A) applied the rate @ 2.3% on the entire turnover. Considering all admittedly the turnover which the basis of show cause notice of Excise Department has been set aside by the CESTAT, therefore the component is not available now for estimating the profit. We, therefore, direct the AO to adopt a net profit @3.3% on the turnover excluding the turnover as determined by the Excise Authorities. Ground of the appeal of the Revenue is partly allowed. Addition on account of Central Excise, addition on account of VAT and undisclosed investment - HELD THAT:- We find that the CESTAT vide its order [2018 (10) TMI 82 - CESTAT NEW DELHI] has set aside the order passed by the Commissioner of Central Excise and Service Tax, therefore, the action of the Assessing Officer is not justified. Accordingly, we confirm the order of the CIT(A) in deleting the addition Addition on account of unaccounted business of the assessee - AO on the basis of show cause notice of the Excise Department reached to a conclusion that the assessee was engaged in the business of unaccounted sales out of its books of account and therefore, some investment would also have been made by the assessee for the alleged unaccounted business confirmed by CIT - HELD THAT:- We find that the CESTAT vide [2018 (10) TMI 82 - CESTAT NEW DELHI] has set aside the order passed by the Commissioner of Central Excise and Service Tax, therefore, the action of the Assessing Officer is not justified. Accordingly, we confirm the order of the ld. CIT(A). Thus, ground of the appeal of the Revenue is dismissed. Rejection of books of account - assessee had not followed the provisions of Section 145 - HELD THAT:- Assessing Officer discussed the contents related to the show cause notice, cash payments towards purchase of scrap and also cash payment to the transporter on the same day, statements of Smt. Neera Banasal and Mayank Bansal, unexplained investment and valuation of closing stock and g.p. rate etc. in detail in the assessment order. While deciding ground no.1 of the appeal of the Revenue, we have partly allowed the ground of the appeal of the Revenue discussing the facts of present issue. Considering the material and rival submissions available on record, we find the ld. CIT(A) was justified in approving the action of the Assessing Officer. - Decided against assessee
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