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COMMISSIONER OF INCOME TAX Versus RITESH AGRAWAL (SIMHAL)

2015 (7) TMI 571 - MADHYA PRADESH HIGH COURT

Unaccounted transaction - AO made the addition on this issue on the basis of loose papers found during course of the search which are not included in the documents BS-1 to BS-8 - ITAT deleted the addition - Held that:- the assessee made detailed submission before the ld. CIT(A) noted above explaining each and every loose paper which are found recorded in BS-1 to BS-8. The papers and tabulations of the assessee were forwarded to the AO for his comments in which AO has not pointed out any mistake. .....

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nts 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 prove and support the findings of the fact recorded by ld. CIT(A) that there is no basis whatsoever in making .....

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old ornaments weighing 1587.472 grams and unrecorded sales of ₹ 60,790/- are not recorded in the books of account as well as in BS-1 to BS-8. The ld. CIT(A) took the value of the same as 6,98,488 and applied n.p rate of 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 un .....

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orities 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, deali .....

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t the order passed by the appellate authorities in deleting an addition of ₹ 1,04,14,407/- on the ground of unaccounted transaction referred by the Assessing Officer, which was recorded in the seized documents BS-1 to BS-8, and by ignoring the same, reduction of the amount is said to be unsustainable. Shri Sanjay Lal, learned counsel for the appellant, referring to the order of the Assessing Officer and the manner in which the entries made in the seized documents, indicated in BS-1 to BS-8 .....

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/- is worked out as per documents BS-1 to BS-8 as against an income of ₹ 1,45,06,000/- computed by the Assessing 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 o .....

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conducted by the appellant where there is a quick turnover, I consider it fair and reasonable if addition on account of unexplained investment for doing unrecorded turnover as found recorded in documents BS-1 to BS-8 is taken at ₹ 30,00,000/- as against the peak investment taken by the Assessing Officer at ₹ 4,56,80,360/-. Thus, appellant will get relief of ₹ 5,03,48,756/- [(Rs.1,45,60,000/- + ₹ 4,56,80,360/-) (Rs.68,91,604/- + ₹ 30,00,000/- )]. Further, after cons .....

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to BS-8. The detailed explanation of the assessee and tabulation with reference to BS-1 to BS-8 are reproduced by ld. CIT(A) at pages 22 to 51 of the appellate order. The papers and tabulations of the assessee were forwarded to the AO for his comments in which AO has not pointed out any mistake. The ld CIT(A) also verified the facts himself and gave a categorical finding that most of the transactions on documents/loose papers discussed by the AO in para 10 of the assessment order are found reco .....

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erefore do not find any 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 su .....

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any investment in making those unrecorded sales. If the sales are there, there are bound to be purchases. The income however could be computed on the basis of unrecorded sales made outside the books of account for which evidence is recovered. The ld. CIT(A) on going through the submission of the assessee and material on record noted that the transactions relating to the sale of gold ornaments weighing 1587.472 grams and unrecorded sales of ₹ 60,790/- are not recorded in the books of accou .....

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