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2019 (10) TMI 1064 - ITAT AHMEDABADUnaccounted sale - Addition on account of Gross Profit made due to alleged theft of electricity - AO made the addition on the basis of alleged unmetered electricity consumed at 181498 units - HELD THAT:- The assessee itself worked out that considering the calculation error made by the MGVCL the unaccounted production works out to only 2125 MT and if it is taken as the basis the unaccounted sales would arriving at 22598 units and applying the average sale price at ₹ 905/- the unaccounted sales would work out 19,23,231/-. Perusal of records also shows that the basis of the addition by the AO was un-metered electricity whereas CIT(Appeals) has taken the basis of lower Gross Profit/Net Profit rate. Except for the electricity units issue no other mistake has been pointed out in the books of account regularly maintained that audited. Except the submission of the assessee accepting the excess units of 22598 units and working out the unaccounted sales all the charges levelled against the assessee by both the lower authorities have no sound basis and they are moving here and there. Sometimes the un-metered units are taken as a basis and sometimes lower Gross Profit/Net Profit rate is taken as a basis to complete the addition even when books of account stands not rejected. Most addition for undisclosed Gross Profit at the average Gross Profit rate of 11.28% on the unaccounted sales accepted by the assessee at ₹ 19,23,231/- can be sustained. We accordingly, confirm the addition at ₹ 2,16,940/- for undisclosed Gross Profit, delete the addition for 13,08,432/- and partly allow the assessee’s appeal.
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