2008 (2) TMI 325

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..... ether on the facts and in the circumstances of the case, the learned ITAT is right in restricting the addition to sales to the extent of Rs.1,44,000/- found unrecorded in the regular account books than determination of sale by the Assessing Officer at Rs.67,66,725/- particularly when the books of account were not authentic and liable to be rejected u/s 145(3) of the Income Tax Act more particularly in view of the judgment of Hon'ble Supreme Court in the case of Commissioner of Sales-tax, M. P v. H. M.  Esufali H. M. Abdulali reported at 90-ITR -271.?" ii)Whether, on the facts and in the circumstances of the case, the learned ITAT is justified in directing to apply a G. P rate of 10% as against 14% applied by the A. O without appreciat .....

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..... was selected for scrutiny. During the course of assessment proceedings the Assessing Officer noticed that one Shri Gaurav Garg had shown purchases of 128000 number of bricks on credit basis for a sale consideration of Rs.144000/- from the assessee. The aforesaid information was put to verification. After that the Assessing Officer came to the conclusion that the assessee had been manufacturing the bricks and selling them outside the books and as such sales were not being disclosed in the return of income tax. The Assessing Officer also noticed certain more discrepancies. Assessing Officer worked out the number of bricks at 5775000. The Assessing Officer also accepted the figure of opening and closing stock disclosed by the Assessing Office .....

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..... imate of gross profit rate of 14% as applied by the Assessing Officer was quite reasonable in the facts and circumstances of the case and the Tribunal wrongly ordered the reduction at 10%. Learned counsel has also argued that in view of the details, as noticed and highlighted in the assessment order, the estimate of sales made by the Assessing Officer was quite reasonable and justified and therefore, the Tribunal has wrongly accepted the sales shown by the assessee. 7. After hearing the learned counsel, we find no infirmity in the impugned order of the Tribunal. The Tribunal has given a pure finding of fact on all the issues. While reducing the gross profit rate, the Tribunal has noticed that neither the assessee nor the Assessing Officer .....

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