TMI Blog2012 (4) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... both these appeals were heard together and are I.T.A.Nos.1060,1061 /Ahd/2008 being disposed off by way of this common order for the sake of convenience. As agreed by both the sides, we first decide the appeal in the case of Shri Ashok B Modi i.e. I.T.A.No. 1060/Ahd/2008. 2. Ground Nos. 1 2 were not pressed by the Ld. A.R. of the assessee and accordingly, rejected as not pressed. 3. Ground No.3 is as under: On the facts and in circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in confirming the action of the A.O. in estimating gross profit @ 13.38% for full year by not accepting loss shown for per survey period. 4. The brief facts of the case are that it is noted by the A.O. that a survey u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacs declared in survey. Such loss as per P L account of the assessee was ₹ 14,40,085/- and the effective addition made by the A.O. is of ₹ 17,82,565/-. 5. Being aggrieved, the assessee carried the matter in appeal before Ld. CIT(A) but without success and now, the assessee is in further appeal before us. 6. It is submitted by the Ld. A.R. that if GP percentage is applied for the pre survey period, then the disclosed amount by the assessee should not be added again because the disclosure is with regard to deficiency in the books during pre survey period and if the disclosure amount is considered to be added in the total income of the assessee, then, the book results of the assessee for the pre survey period should be acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of survey was of ₹ 39.85 lacs. Therefore, in our considered opinion, it is not justified to disturb the book results for the pre survey period because if we consider the disclosure made in the course of survey and also disturb the book results by adopting GP rate then it amounts to double addition because the disclosure in the course of survey is for the purpose of covering the mistake/ undisclosed income of pre survey period and, therefore, either the GP rate can be applied or the addition can be made for the amount disclosed in the course of disclosure of survey and since the impact of income by applying GP Rate for the pre survey period is less than income disclosed by the assessee, the amount disclosed by the assessee in surve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances of the case as well as law on the subject, the Ld. CIT(A) ha erred in confirming the action of the A.O. in estimating gross profit @ 13.62% for full year by not accepting loss shown for pre survey period. 13. It was agreed by both the sides that the facts are identical and hence, this issue can be decided on the same lines as in the case of Ashok B Modi. In that case, we have held that book results of the pre survey period should be accepted and for the post survey period, GP rate should be applied. Accordingly in this case also, we hold that for the pre survey period, book results should be accepted and for the post survey period, GP rate should be applied. For the post survey period in this case, the turnover is of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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