TMI Blog2014 (6) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... addition in the case of assessee, the undisclosed income can be taken only to the extent as shown by the assessee in the paper out of which profit shown in the regular return of income and undisclosed income shown in the return of income for block period be reduce – thus, addition to the extent of Rs. 10,10,515/- is sustainable – Decided partly in favour of Assessee. - IT (SS) A No. 564/Ahd/2010 - - - Dated:- 30-5-2014 - Sri D. K. Tyagi And Shri Anil Chaturvedi,JJ. For the Petitioner : Sri Subhash Bains, CIT-D.R. For the Respondent : Sri G. C. Pipara, A.R. ORDER Per : D. K. Tyagi, Judicial Member:- This is the assessee s appeal against the order of Ld. CIT(A), Gandhinagar dated 30-03-2010. 2. The assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chhagan I Patel, father of one of the partners of the firm Sri Jayesh C. Patel was also covered. In response to notice u/s. 158BD r.w.s. 158BC, the assessee filed a return of block assessment for the period of 01-04- 1990 to 19-04-2000 declaring an undisclosed income of Rs. 1,76,024/-. The basis of declaration of this undisclosed income was the papers found during the course of search which showed sales at Rs. 42,10,505 whereas sales declared for financial year 1996-97 to which the paper pertained, in the return of income was Rs. 24,27,019/-. The assessee offered the gross profit embedded in the differences of Rs. 17,83,486/- i.e. 1,76,024/- as the undisclosed income. The AO completed the block assessment by taking the sales differences as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed income and reducing the same by Rs. 1,76,024/- offered by the assessee. We further find that this seized document is a trading and profit and loss account drawn by the assessee in which all the income and expenses had duly been shown and a net profit of Rs. 12,20,519/- has been reflected. The assessing officer has adopted pick and choose method by taking the sales figure of Rs. 42,10,505/- and ignoring the income of Rs. 12,20,519/- reflected in the same paper after expenses. It is a settled position of law that this pick and choose method/approach is not sustainable in law and if at all this paper was to be relied for making addition in the case of assessee, the undisclosed income can be taken only to the extent of Rs. 12,20,519/- as sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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