TMI Blog2016 (5) TMI 1477X X X X Extracts X X X X X X X X Extracts X X X X ..... t profit rate can be made for the purpose of assessment and not on the basis of G.P. Rate. As such, the addition of ₹ 1,32,000/- confirmed by the CIT(A) is deleted. It is also pertinent to mention here that where N.P. rate is applied, no separate addition can be made on account of purchases made outside the books of account. Therefore, the addition of ₹ 1,00,000/- sustained by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition of ₹ 100,000/- on account undisclosed investment for making undisclosed sales which is based on pure guess work of the Assessing Officer. 4. That the CIT(A) has further erred in confirming the addition of ₹ 1,32,000/- on account of gross profit earned on estimated sales. 5. That the appellant request for accepting the returned income by deleting the impugned addition made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As per information available with the AO, a survey operation u/s 133A of the Act was conducted on the business premises of one M/s. Azad Engineering Works, Bathinda and during the course of the survey certain incriminating documents pertaining to various assessment yeas were found and impounded by the survey team. During the proceedings before the Settlement Commission, M/s. Azad Engineering Wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of undisclosed gross profit rate but the addition made on account of unaccounted investment of ₹ 9,6,8991/- was reduced to ₹ 1,00,000/-. 6. Now, aggrieved with the order of the ld. CIT(A), the assessee is in appeal before this Bench. 7. The ld. Counsel for the assessee, Sh. P.N. Arora, Advocate, submitted that under the Income Tax Act, addition on account of Net Profit r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the alleged sales. Under the Income Tax Act, addition on account of Net profit rate can be made for the purpose of assessment and not on the basis of G.P. Rate. As such, the addition of ₹ 1,32,000/- confirmed by the ld. CIT(A) is deleted. It is also pertinent to mention here that where N.P. rate is applied, no separate addition can be made on account of purchases made outside the books of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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