TMI Blog2015 (7) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... scussed by the AO in para 10 of the assessment order are found recorded in the documents BS-1 to BS-8. The assessee himself admitted few transactions not entered into BS-1 to BS-8. Working of the same is also given and the basis of the same. No justification to interfere in the order of the ld. CIT(A) as regards the transaction entered into the documents BS-1 to BS-8. It is settled law that in the block assessment, addition could be made on the basis of evidence recorded and found during course of the search. The submission of the ld. DR shows that even if some loose papers are recovered during course of the search, the computation of undisclosed income should be computed for whole of the block period. Such a submission itself would prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly set aside the orders of the authorities below to the above extent and direct the authorities below to take the profit on undisclosed sales at ₹ 22,830/- as against ₹ 1,85,593/- sustained by the ld. CIT(A) - Decided in favour of assessee. - ITA-78-2009 - - - Dated:- 7-7-2015 - RAJENDRA MENON AND SUSHIL KUMAR GUPTA, JJ. For The Appellant : Shri Sanjay Lal ORDER This is revenue appeal under section 260-A of the Income Tax Act, calling in question the concurrent orders passed by the Income Tax Appellate Tribunal and Commissioner (Appeals). The premises of the assessee, dealing with jewelries, was subjected to search and seizure action on 1.8.2002. Notice and proceedings were held under section 158 BC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer. As regards further addition made by the Assessing Officer on account of peak investment amounting to ₹ 4,56,80,360/-, in my view, such huge addition of ₹ 4,56,80,360/- looking to the nature of business transactions found unrecorded in documents BS-1 to BS-8 appears to be too high. Peak investment is usually worked out when similar transactions are recorded on both sides which is not applicable in case of the appellant. Therefore, computation of peak investment worked out by the Assessing Officer does not appear to be logical. However, admittedly appellant had done unrecorded business as found reflected in documents BS-1 to BS-8 and some capital is required for doing unrecorded turnover as discussed above. Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegorical finding that most of the transactions on documents/loose papers discussed by the AO in para 10 of the assessment order are found recorded in the documents BS-1 to BS-8. The assessee himself admitted few transactions not entered into BS-1 to BS-8. Working of the same is also given and the basis of the same. Ld. CIT(A), DR during the course of the arguments did not dispute working of the assessee given before ld. CIT(A) and has not pointed out any infirmity in the findings of the ld. CIT(A) on this issue. Ld. CIT(A), DR did not bring any material on record to contradict the findings of the fact recorded by the ld. CIT(A). We therefore do not find any justification to interfere in the order of the ld. CIT(A) as regards the transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 13% and make the addition of ₹ 90,903/- and further addition of ₹ 34,000/- being investment in the aforesaid sales. We have applied n.p rate of 3% in the case of the assessee being wholesale dealer. The same rate is applicable on this issue also therefore for unrecorded sale of gold ornaments, the entire sale receipts cannot be profit of the assessee as is held by the Hon ble MP High Court in the case of Balchand Ajitkumar (supra). On both the figures of ₹ 6,98,488/- and ₹ 60,970/- as is confirmed by ld. CIT(A), if n.p rate of 3% is applied, it would give approximate profit of ₹ 21,000/- + ₹ 1830/- (Rs,22,830/-). Since no evidence of undisclosed investment is found, the addition of ₹ 34,000/- is d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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