TMI Blog2014 (2) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-3-2012 - Shri Mukul Kr. Shrawat, JM And Shri A. Mohan Alankamony, AM,JJ. For the Appellant : Shri J. P. Shah, AR For the Respondent : Shri B. L. Yadav, Sr. DR ORDER Per A. Mohan Alankamony: This appeal by the assessee is directed against order of the learned CIT(A)-III, Baroda dated 14th November, 2008 for assessment year 2002-03 in Appeal No. CAB/III- 198/07-08, sustaining the addition made by the AO to the extent of Rs.4,07,479/- in respect of unaccounted production and profit on unrecorded sales. 2. Briefly, the facts of the case as noted by the learned CIT(A) are that addition of Rs.5,29,072/- on account of unaccounted production and profit on unrecorded sales was made by the AO based on the information receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 63 wherein it has been held that the Revenue had not proved by bringing any material on record that the assessee had made any investment to make the alleged unaccounted sales. Therefore, the finding of the Tribunal that only the gross profit could be brought to tax did not call for any inference. 4.1 The learned AR further relied on the decision of ITAT Ahmedabad, Third Member Bench in the case of ITO Vs Gurubachansingh J. Juneja, 54 TTJ (Ahd) ( TM ) 1 (55 ITD 75 ( TM) wherein it has been held as under: Conclusion: Addition of entire unaccounted sales cannot be made as sales is not income and only income by application of G.P. rate can be added; however, where unaccounted sales were computed at a particular figure, CIT(A) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,479/- by adapting the G.P on sale @ 40% amounting to Rs. 2,07,479/- and Rs. 2,00,000/- being unaccounted investment for effecting the sale of Rs. 5,18,698/-. Considering the facts and circumstance of the case we are of the view that though additions are to be made in this case the view expressed and the amount of addition made and sustained by the Ld.AO and Ld.CIT(A) is not appropriate. However drawing strength from the various judicial decisions rendered by the ITAT Ahmedabad benches Viz ITA No. 3407 ITO V/s Shri Sathynarayan P.Rathi dated 10/02/2012 wherein decision in the case M/s. Vijay Proteins Ltd. Reported in 58ITD 528 is also considered, we are of the considered view that 12.5% margin on such uncounted sale of Rs. 5,18,608/- will s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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