2023 (3) TMI 771 - AT - Income Tax

Gross Profit addition - unaccounted sales - AO has applied Gross Profit on unaccounted sales at 3.36% - CIT-A deleted the addition - HELD THAT:- The Excise Authority had not concluded their proceeding pointing out the alleged unaccounted sales. It was just an investigation process, and out of which material was supplied to the Income Tax Authorities. What is the final outcome to such a material was not traced out by the ld. Assessing Officer. Even during the course of hearing before us, it was submitted by assessee that Excise Authorities have not made any addition.

The assessee before the ld. 1st Appellate Authority put reliance upon the judgment of the Hon’ble Gujarat High Court in the case of Principal CIT –vs. – Ganga Glazed Tiles Pvt. Limited [2019 (7) TMI 547 - GUJARAT HIGH COURT] as upheld the order of the ITAT, wherein additions have been deleted under identical circumstances. Thus a perusal of finding of the ld. 1st Appellate Authority extracted supra, we are satisfied that the ld. 1st Appellate Authority had made analysis in right perspective and there was no material possessed by the Revenue, which can demonstrate unaccounted sales made by the assessee in both the years. The additions have been rightly deleted by the ld. 1st Appellate Authority and we do not find any merit in these appeals, these are dismissed.