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TMI Blog2014 (2) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... t issue in this appeal of assessee is against the order of CIT(A) confirming the addition of Rs. 3,81,383/- on account of gross profit. For this, assessee has raised following two grounds: "1. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in not accepting the bank account of the Partnership firm, which was opened in the name of a Partner. 2. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the addition of Rs. 3,81,383/- on account of gross profit." 3. We have heard both the sides and gone through facts and circumstances of the case. Briefly stated facts are that during the course of assessment proceedings, the AO noticed that the total sales as per trading acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of Human Hair effectively and smoothly. In reality, the assessee was found to carry on two business activity in the same line and in the same name. But one in individual capacity and another in partnership by forming an alleged partnership deed dated 31.03.2007. The assessee claimed that this account was under the partnership firm run vide partnership deed dated 31.03.2007 under the same name of Jabibur Rahaman. But the AO was not convinced and treated the transactions of Rs. 1,35,22,943/- being (i.e. Rs. 81,55,443/- + Rs. 53,67,500/-) and applying G.P. rate of 4.68% computed the profit from trading account at Rs. 6,32,873/- and thereby added an income of Rs. 3,81,383/- to the disclosed G.P. Aggrieved, assessee preferred appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis of transactions found in the undisclosed bank account i.e SB A/c. No.163010100102292 with Axìs Bank, Berhampore Branch. For the estimated gross profit addition at Rs. 3,81,383/-, the AO adopted same G.P. percentage of 4.68% as taken by the appellant for his disclosed turnover. Therefore, I can't say that the AO was not right in his decision. The addition of Rs. 3,81,383/- is therefore, confirmed." 4. Before us the ld. counsel for the assessee filed paper book consists of pages 1 to 40 and drew our attention to the partnership deed dated 30.03.2007 which is effective w.e.f. 23.03.2007 vide clause 3, which reads as under: "The partnership business shall be deemed to have commenced on and from 23.03.2007 and shall continue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the addition of peak credit at Rs. 10,60,742/- as against the total addition of Rs. 18,02,087/-. 6. We have heard rival submissions and gone through facts and circumstances of the case. We find that the bank account maintained with Axis Bank is under dispute i.e. the deposits and withdrawals at Rs. 1,02,92,960/-. The AO has added peak credits at Rs. 18,02,087/- and CIT(A) restricted the peak at Rs. 10,60,742/-. As we have already adjudicated the above issue holding that this bank account belongs to partnership firm and not to the individual, taking the same view, we direct the AO to take action in the hands of the firm, if any and that also as per law. We direct the AO accordingly. Appeal of assessee is allowed. 7. In the result, app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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