TMI Blog2012 (10) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. 2) The Ld. CIT(A) has erred in confirming the addition of ₹ 2,98,629/- and ₹ 62,536/- respectively being amount of suppression of sales and gross margin thereon without appreciating the facts of the case and submissions made before him in this regard. 3) The Ld. CIT(A) has erred in confirming the disallowance of ₹ 30,000/- out of salary payment made to party referred to in section 40A(2)(b) of the Act. 4) The Ld. CIT(A) has erred in ignoring the adhoc disallowance of 20% of conveyance expenses made by the AO despite the fact that such disallowance has resulted in total disallowance of conveyance expenses to 120% of the total expenses claimed. Similarly the CIT(A) has also erred in not considering the adh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly directed to be allowed having regard to the judgment rendered by Hon'ble Kerala High Court in the case of CIT vs. S.P. Nair Ors. (234 ITR 94) (Ker). The balance addition of ₹ 8,080/- is sustained. 4. In so far as the disallowance of miscellaneous expenses of ₹ 3,874/- out of the total expenses of ₹ 8,288/- is concerned, the disallowance is found reasonable as estimated deduction allowed by the assessing authority is commensurate to the business activities and turnover achieved by the assessee. The disallowance so made, therefore, stands confirmed. 5. In so far as the disallowance of salary of ₹ 59,800/- is concerned, the authorities below have also disallowed a sum of ₹ 30,000/- paid in cash to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med as sales made outside the books. Parties before us admit that investment in the purchase of goods dealt by the assessee is duly accounted for in the books of account. That being so, entire amount of sales could not have been brought to tax. It is only the gross profit margin on the sales effected outside the books by the assessee, could be alone treated as his income. We, therefore, direct the AO to apply the gross profit margin as declared by the assessee @ 23% on the sales of ₹ 2,98,629/-. The addition to that extent stands sustained and balance of the addition is directed to be deleted. 8. Ground No. 4 has not been pressed. The same has stands dismissed as not pressed. 9. In the result, assessee s appeal stands partly all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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