TMI Blog2000 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal whereby the Tribunal deleted the addition made under Chapter XIV-B of the Income-tax Act, 1961. The facts giving rise to this, appeal, briefly, are as follows : During the course of search, stock worth Rs. 1,32,52,685 was found in the factory/business premises of the assessee. The stock consisted of raw material and finished products. The assessee stated in reply that it was not maintaini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count by applying the rate of 15 per cent. and thereby working out the estimated figure of stock at Rs. 2,05,90,919 as against stock of Rs. 1,38,14,855 actually found during the course of search action. The Tribunal found that the rate of 15 per cent. was excessive. The Tribunal also found that in the course of the second addition of Rs. 12,64,746 it has been held by the Assessing Officer that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was urged on behalf of the Department that under the above circumstances, the Assessing Officer was right in making the above additions. We do not find any merit in the said contention. Firstly, the block assessment is for the period 1984-1995. One fails to understand as to whether the Assessing Officer was justified in applying the gross profit rate of 15 per cent. only on the basis that the ten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit rate of 15 per cent. was the basis for the entire period 1984-1995. In the circumstances, an excessive rate of gross profit was applied to arrive at the conclusion that the closing stock was suppressed. Lastly, as pointed out by the Tribunal, in the matter of the second addition, the Assessing Officer has worked out the said addition on the basis of excess of stock which finding is contrar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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