TMI Blog2012 (9) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... ons for reducing the declaration made at the time of survey. We find whatever the items of additions which are estimated by the A.O. are covered by disclosure made at the time of survey for Rs.14,00,000/-. We, therefore, find that it will be fair and justice to both sides and to cover all lapses and deficiency which have been pointed by Revenue authorities if addition to the extent of Rs.2,50,000/- is sustained out of the total addition of Rs.23,40,650/- made by the A.O. We accordingly sustain addition to the extent of Rs.2,50,000/- and balance amount of addition is deleted - Decided partly in favor of assessee - ITA No.30/Agr/2012 - - - Dated:- 20-7-2012 - SHRI BHAVNESH SAINI, AND SHRI A.L. GEHLOT, JJ. Appellant by : Shri P.N. Agarw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed that the assessee has surrendered income only to the extent of Rs.11,50,000/-. During the course of survey, total sales outside the books of account quantified at Rs.57,13,791/- against the purchases of Rs.44,48,400/-. The A.O. on the basis of unaccounted purchase and sale, found that there was unexplained investment for effecting sale of Rs.57,13,791/-. The A.O. applied G.P. rate of 18.67% and accordingly calculated unexplained amount of investment of Rs.10,66,764/-. The A.O. also noticed that difference in between unaccounted sale and purchase of which calculation comes to Rs.12,65,391/- (57,13,791.00 44,48,400), therefore, he treated the said difference as G.P. and made addition of Rs.12,65,391/-. It has also been noted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly sustained the addition of Rs.3,14,250/- as against addition of Rs.10,66,764/- made by the A.O. 4. The CIT(A) confirmed the addition of Rs.11,58,795/- on account of extra profit. The CIT(A) restricted addition to the extent of Rs.1,15,391/- on account of difference amount of sale and purchase as against addition of Rs.12,65,391/- made by the A.O. on the ground that the A.O. himself admitted that in the return of income the assessee offered an amount of Rs.11,50,000/-. The CIT(A) was of the view that the addition to the extent of Rs.11.50,000/- is a double addition. 5. We have heard the ld. Representatives of the parties and perused the records. Admitted facts of the case are that a survey operation was conducted under section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sale. Another addition has been calculated by the A.O. by applying gross ratio on addition of Rs.10,66,764/-. In addition to above, the A.O. applied a G.P. rate of 22.14% on entire declared turnover which was recorded in the books of account of the assessee. As noted in paragraph no.2 of his order that the assessee himself has surrendered Rs.14,00,000/-, however, Rs.11,50,000/- was offered in the return of income. During the course of assessment proceedings, the assessee want to surrender Rs.2,50,000/- as noted by the A.O. in paragraph no.8.2. The same was stated to be retraced during the assessment proceedings but no material and details were found on record on what basis this 2.5 lakhs was retracted. In absence of such material, addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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