TMI Blog2023 (6) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... .) Ltd. [ 2019 (7) TMI 547 - GUJARAT HIGH COURT ] Revenue s further appeal before the Hon ble High Court were dismissed and SLP filed before Hon ble Supreme Court [ 2020 (1) TMI 1502 - SUPREME COURT ] which were happened after the passing of the order by the Ld. CIT(A). Thus we are of the considered opinion, accepting the submissions made under Rule 27 of ITAT Rules and entertaining the judgments placed by the assessee, we deem it fit to set aside the matter back to the file of the Ld. A.O. to consider the above judgments placed by the assessee and determine the income in accordance with law. Appeal filed by the Revenue is hereby allowed for statistical purposes. - ITA No. 265/Rjt/2017 - - - Dated:- 31-5-2023 - Smt. Annapurna Gupta, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to be estimated at Rs. 54.73% and addition of Rs. 2,05,63,760/- why should not be added as the total income of the assessee. 3. The assessee replied that the SCN issued by Excise Department is in adjudication stage and therefore the working out of GP at 54.73% proposed by the A.O. is highly astronomical and unrealistic. If it is examined of similar industry, the GP is in the range of 10% to 13% and Net Profit is in the range of 0.50% to 1.50%. Therefore the assessee requested adopt the Net Profit in range of 0.75% to 1% which is a reasonable Net Profit liable to be taxed. The above explanation was not accepted and the Assessing Officer computed the Net Profit at 54.73% and added the same as unaccounted sales made by the assessee to Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks of accounts which are duly audited and the assessee reported the Net Profit @ 0.22% on the declared turnover of Rs. 5.74 crores. Whereas the Assessing Officer reworked out the G.P. rate at 54.73% on the unaccounted sales on the same set of books of accounts without rejecting the books. However the Ld. CIT(A) estimated the Gross Profit at 1% for the current year. The Ld. Counsel further submitted subsequent to the decision of the Ld. CIT(A) on identical situation of suppressed sales by way of clandestine removal of the goods during the course of search by Central Excise Department and completion of assessment proceedings by the Excise Authorities, the Hon ble Gujarat High Court in the case of PCIT Vs. Vrundavan Ceramics (P.) Ltd. reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 020 reported in [2020] 117 taxmann.com 108 (SC). Thus the Ld. Counsel submitted all these decisions are subsequent to the appellate order dated 15.05.2017 passed by Ld. CIT(A), who has confirmed the addition at 1% GP. Thus invoking Rule 27 of the I.T.A.T. Rules and Ld. Counsel requested to delete the addition of Rs. 8,27,329/- determined by the Ld. CIT(A) and direct to consider the Co-ordinate Bench decisions in the case of Ganga Glazed Tiles Pvt. Ltd. which is confirmed by Hon ble Supreme Court as well as the Vrundavan Ceramics (P.) Ltd. judgment in the context of Central Excise demand deleted by Jurisdictional High Court. 8. We have given our thoughtful consideration and perused the materials available on record including the Paper Boo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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