TMI Blog2011 (7) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... .544/- - made by the A.O, on account of G.P. The learned CIT(A) erred on facts and in law in giving relief of ₹ 9,22,400/- out of total addition of ₹ 11,56,400/- made by the A.O. on account of unaccounted investments made for various sales transactions. On the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld the order of the A.O. It is therefore, prayed that the order of the Assessing Officer may be restored to the above extent 3. The grounds raised by the assessee in the cross objection are as under: 1.0 The grounds of cross-objections mentioned hereunder are without prejudice to one another. 2.0 The learned Commissioner of Income-tax (Appeals)-XVIII, Ahmedabad [herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustries 258 ITR 654 (Guj.) (b) CIT Vs Gurbachan Singh J Juneja 302 ITR 63 (Guj.) 6. As against this, the Ld. D.R. supported the assessment order. 7. We have considered the rival submissions, perused the material on record and have gone through the orders of authorities below and the judgements cited by the Ld. A.R. Ld. CIT(A) has confirmed the addition to the extent of ₹ 2.34 lacs being the amount of peak sales. Ld. A.R. placed reliance on the judgment of Hon'ble High Court of Gujarat rendered in the case of CIT Vs President Industries (supra) in support of his contention that unless there is a finding to the effect that investment by way of incurring the cost in acquiring the goods which have been sold, had been made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by the assessee in unaccounted purchase and, therefore, addition only to the extent of profit in respect of unaccounted sale is justified. We, therefore, uphold the addition to the extent of profit @ 7% on unaccounted sales of ₹ 11,56,400/-. 8. Regarding one more aspect i.e. regarding cash found of ₹ 4.52 lacs, we find that no addition was made by the A.O. for such cash found. Hence out of the total addition made by the A.O. in respect of unaccounted sales of ₹ 11,56,400/-, we confirm the addition to the extent of 7% of it i.e. ₹ 80,948/- and delete the balance amount. 9. Regarding the 2nd addition made by the A.O. in respect of G.P. of ₹ 2,88,544/- by applying 7% G P Rate, on the accounted sales as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing any other adverse material on record and hence, we are of the considered opinion that no interference is called for in the order of Ld. CIT(A) on this aspect of the matter. Ld. CIT(A) has given a finding that there is no evidence to show that the gross profit admitted in the books of account are incorrect and hence, there is no justification of making addition of ₹ 2,88,544/- because unrecorded sales are not forming part of books and there is no other adverse material brought on record. We, therefore, decline to interfere in the order of Ld. CIT(A) on this issue. 11. Grounds No. 1 2 of the revenue are rejected whereas Ground No.2 of the cross objection of the assessee is partly allowed. 12. In the result, the cross objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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