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2019 (7) TMI 322 - ALLAHABAD HIGH COURTAddition towards non-existing profits - increase of turnover on ad-hoc basis - assessee was a Society that had made purchase of coal for supply made to its members on service charge basis only - HELD THAT:- The assessee are not a regular dealer in coal who may have purchased and sold coal solely for the purposes of deriving profits - Undisputedly, the assessee are the Societies constituted by various brick kilns and they exist for the purpose of ensuring smooth supply of coal to their members at reasonable price. In place of regular profits, the assessee had only charged service charges from its members, that have given rise to their profits. The case of the assessee, in this regard, has been definitely accepted by the Tribunal, inasmuch as in the computation of the taxable turnover, the Tribunal has included the value of goods, loading and unloading charges, railway freight as also the service charges received by the assessee. Once the modus operandi of the assessee's business has been accepted and held to be that Societies were running for the benefit for their members and once service charges had been included in the taxable turnover of the assessee, in that circumstance, there survived no room for making any further addition on presumptive basis. The question of law is answered in the negative i.e. in favor of the assessee and against the revenue - Revision allowed.
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