TMI Blog2023 (1) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... tal unaccounted purchases for the impugned assessment year - Therefore, it is difficult to accept the arguments of the assessee that income earned out of unaccounted sales is plugged back into the business and which is source for unaccounted purchases, because, unaccounted purchases noticed by the Department is more than the amount of additional income offered by the assessee. Therefore, assessee could not able to explain source for unaccounted purchases over and above what was disclosed during the course of survey. Hence, to cover up the deficit in source for unaccounted purchases, we direct the AO to estimate 25% of gross profit on unaccounted purchases and delete the balance additions made towards unaccounted purchases. Appeal file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No.21 of 2022 in Suo Motu Writ Petition (C) No.3 of 2020, has extended limitation applicable to all proceedings in respect of Courts and Tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided by the Hon'ble Supreme Court extending limitation period applicable for all proceedings before Courts and Tribunals and thus, considering facts and circumstances of the case and also in the interest of natural justice, we condone delay in filing appeal filed by the assessee. 3. The brief facts of the case are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the explanation furnished by the assessee and according to the AO, the assessee could not submit any evidences to support his claim that unaccounted purchases were made from the income earned through unaccounted sales. Therefore, rejected arguments of the assessee and made addition of Rs.75,67,705/- towards unaccounted purchases. The assessee carried the matter in appeal before the First Appellate Authority, but could not succeeded. The Ld.CIT(A) for the reasons stated in their appellate order dated 16.03.2020, sustained the additions made by the AO. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. 4. The Ld.AR for the assessee submitted that the Ld.CIT(A) is erred in appreciating the fact that when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards unaccounted purchases does not arise. Moreover, it is only net result of unaccounted purchases unaccounted sales, needs to be taxed. Since, the Department had already taxed profit earned out of unaccounted transactions, the question of making further additions towards unaccounted purchases does not arise. In this case, the facts remain that the assessee has offered additional income of Rs.38,37,921/- for two assessment years towards unaccounted sales, whereas the total unaccounted purchases for the impugned assessment year is Rs.75,67,705/-. Therefore, it is difficult to accept the arguments of the assessee that income earned out of unaccounted sales is plugged back into the business and which is source for unaccounted purchases, bec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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