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2019 (4) TMI 1910

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..... le at a sacrifice of some margin profit rate. There is no justification for applying the NP rate at 8.33% of earlier year wherein the assessee has filed return u/s 44AD. Accordingly the Assessing Officer is directed to recompute the addition by applying 6% NP rate on the turnover suggested by me hereinabove. Addition u/s 69 with respect to stock in trade and cash balance - HELD THAT:- Assessee has not filed any details of such stock and cash in hand in its return of earlier year. By the impugned order, the ld. CIT(A) had given credit of ₹ 13,57,810/- by observing that the assessee had shown closing stock with the VAT return and the VAT department has accepted the return filed by the assessee wherein closing stock was shown at  .....

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..... BI 5. ICICI Bank The AO has given the finding that the appellant had not disclosed the hank accounts maintained with PNB, SBI AND ICICI Bank Ltd. in the books of accounts. Hence he treated the entire credit of ₹ 1,34,47,619/- appearing in these three bank accounts as undisclosed turnover of the appellant and worked out the total turnover of the appellant at ₹ 2,81,92,317/- (₹ 1,47,44,698 + ₹ 1,34,47,619) and net profit @8.33% was computed on the total turnover of ₹ 2,81,92,317/- at ₹ 23,48,420/-. 4. By the impugned order, the ld. CIT(A) given credit of ₹ 80,90,350/- which he found that the cash was withdrawn by the assessee from one bank account and deposited in another bank account. As per .....

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..... has increased substantially which is possible at a sacrifice of some margin profit rate. Thus, there is no justification for applying the NP rate at 8.33% of earlier year wherein the assessee has filed return U/s 44AD of the Act. Accordingly the Assessing Officer is directed to recompute the addition by applying 6% NP rate on the turnover suggested by me hereinabove. 5. The Assessing Officer has also made addition U/s 69 of the Act with respect to stock in trade amount to ₹ 19,09,611/- and cash balance of ₹ 62,730/- on the plea that the assessee has not filed any details of such stock and cash in hand in its return of earlier year. By the impugned order, the ld. CIT(A) had given credit of ₹ 13,57,810/- by observing that .....

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