TMI Blog2003 (2) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... 38,50,772 for asst. yr. 1996-97 and Rs. 12,83,642 for asst. yr. 1997-98 (upto 20th June, 1996) as undisclosed income by taking the GP rate at 1.37 per cent. 3. The proceedings under s. 158BD were initiated against assessee on the basis of search and seizure action taken in the case of Shri Sunil Agarwal group of cases. During the assessment proceedings the AO noted that while filing the return for asst. yr. 1995-96, the assessee has declared GP rate of 1.37 per cent on total sales shown at Rs. 2,35,98,762; whereas the GP rate for asst. yrs. 1996-97 and 1997-98 were shown by assessee at 0.53 per cent and 0.54 per cent. The reasons for low GP rate for these two years were asked by the AO from the assessee. The reply was filed by assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65 TTJ (Pat)(TM) 504 : (1999) 70 ITD 77 (Pat)(TM). On the other hand, the learned Departmental Representative placed reliance on the order of the AO. 5. After hearing rival submissions and perusing the relevant material on record, we find that assessee deserves to succeed in this ground. Undisputedly the assessee is maintaining regular books of account and all the purchases and sales were vouched and recorded. Neither any incriminating documents were found during the course of search, which suggests that the purchases and sales shown by assessee have not been recorded fully and truly. Similar additions were made in the case of Sunil Agarwal, one of the group cases and the appeal of Shri Sunil Agarwal has been decided by the Tribunal in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial the loan was given. The AO made the addition of Rs. 45 lakhs on protective basis by observing that the addition of Rs. 1.36 crores has been made in the case of Sunil Agarwal on substantive basis, which includes the sum of Rs. 45 lakhs shown as loan from M/s Nice International. 8. At the time of hearing, the counsel of the assessee stated that loan taken from Nice International has already been held as genuine by the Tribunal while disposing the appeal of Shri Sunil Agarwal. The attention of the Bench was drawn on paras 57 to 59 of the order of the Tribunal in the case of Sunil Kumar Agarwal. On the other hand, the learned Departmental Representative simply placed reliance on the order of the AO. 9. After perusing the relevant ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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