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2017 (6) TMI 643 - ITAT BANGALOREAssessment of income in the hand of assessee-individual instead of HUF - Held that:- As in the case on hand when no transfer of license by the holder of the licensee is involved then the decisions of Hon'ble Supreme Court as relied in the case of Biharilal Jaiswal Vs. CIT [1995 (11) TMI 2 - SUPREME Court] and CIT Vs. Rangila Ram & Others [2000 (8) TMI 11 - SUPREME Court] are not applicable in the case of the assessee. In view of the above discussion, the orders of the authorities below qua this issue are set aside and the claim of the assessee is allowed to the extent that the income offered in the hand of the HUF cannot be assessed in the hand of the individual-assessee. Gross Profit (GP) addition - Held that:- For the year under consideration the assessee has offered the income which is equal to GP at 11.43%. Accordingly when the assessee itself has shown GP at 11.43% then making addition by taking an estimate of GP at 14% is not justified as there is no significant difference. Even otherwise, the authorities below have not brought on record any specific reason for not accepting the GP shown by the assessee. The only reason by the Assessing Officer is the direction obtained from ACIT under Section 144A of the Act regarding assessment to be made in the hand of the assessee-individual. These directions are based on the data made available by KSBCL and therefore there is always a scope of tolerance range of fluctuation of GP of individual cases and if the assessee’s GP is falling within the reasonable range of fluctuation of GP then no addition can be made by taking GP on estimate basis. Hence the GP addition made by the authorities below is deleted. Addition made on account of difference between the sales shown in VAT return and regular books of accounts - Held that:- It is noted that the difference of sales as per the VAT Return and books of accounts has not been disputed by the assessee therefore the sales shown in the VAT Return cannot be ignored. However the entire sale cannot be treated as income of the assessee and therefore only GP addition of such excess sale as per the VAT Return has to be added as income of the assessee. The Assessing Officer is directed to make the addition by taking the GP as declared by the assessee.
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