TMI Blog2018 (8) TMI 1648X X X X Extracts X X X X X X X X Extracts X X X X ..... urers and sellers of gold jewelry to engage in arranging for sale of gold jewelery manufactured by third parties for a commission of about 3%. Thus, going by the statement given by the assessee, the Assessing Officer estimated the profit at 7.17% as was declared by the assessee in respect of sales effected by them. The CIT (A) does not interfere with the finding recorded by the Assessing Officer on this aspect, but only reduced the percentage of gross profit. In fact, the reason assigned by the CIT (A) stating that there was no extra rent, salary, traveling, interest payment for the unaccounted sales, was not borne out by any material and appears to be the personal view of the CIT (A), which could not have been the basis for reversing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.1.1997 resulting in the seizure of books and documents. Pursuant to such search operations, a notice under Section 158BC of the Income Tax Act, 1961 was issued to the assessee seeking their return of income for the block period ending 30.1.1997. The assessee furnished the return of income on 21.4.1997 admitting an income of ₹ 6 lakhs as undisclosed income for the block period ending 30.1.1997. After considering the return of income filed, the assessee was asked to furnish the basis, on which, the said undisclosed income was admitted by the assessee. The assessee, vide letter dated 23.9.1997, stated that the declared income represented the commission earned by it in arrangement of sale of jewelery, for which, no documentary evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the statement given by the assessee that the amount did not represent the sale of jewelery to the said Mr.Perumal, but was a commission earned for arranging for sale of jewelery from third parties and apart from the said statement given by the assessee, there was no other material for the Assessing Officer to conclude that the stand taken by the assessee was not sustainable. It is further contended that the statement of the said Mr.Perumal that it was a financial transaction was not supported by records and on the contrary, the assessee averred the said income as the income earned through commission for arranging for sale of jewelery. Therefore, it is also contended that based on a statement, which was recorded during search operation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the conclusion arrived at by the Assessing Officer that it would be highly improper and imprudent on the part of the assessee firm, who themselves are manufacturers and sellers of gold jewelery to engage in arranging for sale of gold jewelery manufactured by third parties for a commission of about 3%. Thus, going by the statement given by the assessee, the Assessing Officer estimated the profit at 7.17% as was declared by the assessee in respect of sales effected by them. The CIT (A) does not interfere with the finding recorded by the Assessing Officer on this aspect, but only reduced the percentage of gross profit. 13. In fact, the reason assigned by the CIT (A) stating that there was no extra rent, salary, traveling, interest paym ..... X X X X Extracts X X X X X X X X Extracts X X X X
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