9911796707
TMI Blog2013 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... f income for the assessment year 2003-04 on 24-11-2003 declaring total income at Rs. Nil on account of loss. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 29-03-2006 and the total loss was determined at Rs.70,19,220/-. Aggrieved by the order of the learned AO, the assessee carried the matter before the learned CIT(A). The learned CIT(A) vide order dated 18-09-2006 partly allowed the appeal of the assessee. Aggrieved by this order of the learned CIT(A) the revenue is now in appeal before us and has raised the following effective ground: "(1). The learned CIT (A) erred on facts and in law in directing to adopt the average GP rate of last three years for applying GP rate on unac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounted sale. Aggrieved by the order of the learned AO, the assessee carried the matter before the learned CIT(A). The learned CIT(A) considering the submissions of the assessee granted partial relief to the assessee by holding as under:- "5.1 During the course of appellate proceedings, the Authorized Representative filed a written submission in which is explained that the Excise Department has detected shortage of stock valued at Rs.3,05,32,388/- while conducting survey at the premises of the appellant on 17.7.2002. The order passed by the assessing authority of Central Excise Department has been confirmed by the first appellate authority. Therefore, I do not find any merit in the contention of the Authorized Representative. In absence o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord. It is an undisputed fact that during the search by the Central Excise Authorities shortage of stock was found and the same was confirmed by first appellate authority. The learned AO has considered the entire value of the unaccounted stock as sales of the assessee and the full value was considered as income. The learned CIT(A) vide his order had directed to adopt the average GP rate of last three years on the said unaccounted sales as the income of the assessee. From the copy of the annual accounts placed on record it is seen that the assessee is having loss in the year under consideration and even in the immediately preceding assessment year i. e. no gross profits. It is settled law that the entire sales cannot be considered as income ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
