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2017 (5) TMI 306 - GUJARAT HIGH COURTTrading addition - G.P. estimation - AO made the additions solely on the basis of the documents seized during the course of survey - Held that:- AO did not specifically reject the audited books of accounts produced by the respondent – assessee. CIT(A) deleted the additions made by the Assessing Officer, which was made solely on the basis of the incriminating material documents seized. Cogent reasons have been given by the learned CIT(A) as well as the learned tribunal in deleting the additions made by the Assessing Officer. We are in complete agreement with the view taken by the learned CIT(A) as well as the learned tribunal while deleting additions made by the Assessing Officer, more particularly, when the Assessing Officer did not reject the audited books of accounts produced and relied upon by the respondent – assessee. So far as the estimation of the GP at 13% on ₹ 65 lakhs is concerned, it is required to be noted that on the basis of the incriminating material, the learned CIT(A) directed to make the addition in the hands of the respondent – assessee of ₹ 65 lakhs. On appreciation of evidence and on the basis of the estimation the learned CIT(A) determined the GP at 13% and the same has been confirmed by the learned tribunal. By giving cogent reasons and on estimation basis, which is permissible, when the learned CIT(A) estimated the GP at 13% of ₹ 65 lakhs, it cannot be said that any substantial questions of law arise.
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