TMI Blog2012 (8) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ATURVEDI,A.M. This appeal is filed by the Revenue against the order of CIT (A)- Valsad dated 27-10-2008 for the assessment year 2005-06. 2. The Revenue has taken following grounds of appeal:- 1. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition made of Rs.33,59,180/- being the profit earned from unaccounted sales worth Rs.2,08,81,533/-. 2. While deleting the addition of Rs.33,59,180/-, on the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in treating the sales as per return of Rs.3,14,44,217/- is inclusive of unaccounted sales worth Rs.2,08,81,.533/-. 3. While deleting the addition of Rs.33,59,180/-,on the facts and circumstances of the case and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order by giving partial relief to assessee. The Revenue being aggrieved by the order of CIT (A) is now in appeal before us. 6. Before us the Department has raised 3 grounds with respect to unaccounted sales and profit thereon. Since all the 3 grounds are related and interlinked all the 3 grounds are taken together. 7. During the course of assessment proceedings A.O. observed that the total sales of assessee as per Profit and loss account was Rs.3,14,44,217/-. In the absence of any details/clarification from assessee, the A.O. considered and allowed Rs.2,64,38,268/- as being towards the cost of raw materials and other expenses. The A.O. accordingly computed net profit of Rs.50,05,949/- (3,14,44,217 less 2,64,38,268) and added it to the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of CIT (A) is in appeal before us. 9. Before us, the Ld. D.R. contended that Ld. CIT (A) failed to appreciate the fact that the net profit of Rs.50,05,949/- has been calculated on the basis of sales shown by assessee. The Excise Department had in their enquiry found unaccounted sale of Rs.2,11,00,377/-. The Ld. CIT(A) considered this accounted sale as part of the sale shown in the books which is not the fact. He therefore, contended that the deletion of Rs.33,59,180/- was wrong as 2 types of sales namely accounted and unaccounted sales are involved. On the accounted sale the net profit comes to Rs.50,05,949/- and on unaccounted sale the net profit comes to Rs.33,59,180/-.Since Ld. CIT (A) has upheld net profit on accounted sale h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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