TMI Blog2023 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... among the four assessees and directed the Assessing Officer to adopt the total income determined which has been considered as the undisclosed income of the assessee and its group concerns. GP around 20 to 32% in the same line of business in respect of any other assessees has nothing to do in the present case. We find no reason to interfere with the order passed by the ld. CIT(A) and thus, the grounds raised by the Revenue are dismissed. - I.T.A. No. 938/Chny/2022 And C.O. No. 15/Chny/2022 [in ITA No. 938/Chny/2022] - - - Dated:- 23-6-2023 - Shri V. Durga Rao, Judicial Member And Shri Arun Khodpia, Accountant Member For the Department : Shri D. Hema Bhupal, JCIT For the Assessee : Shri S. Sridhar, Advocate (Erode) ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timated the sales outside books for the entire year based on the evidence available for 19 days. The Supreme Court held that so long as the estimate made by STO was not arbitrary and has nexus with facts discovered, the same could not be questioned. 2.2 The Ld.CIT(A) erred in observing that the action of the AO in extrapolation in the absence of evidence and quantification of undisclosed income without matching with the assets found and expenditure incurred is neither logically correct nor legally tenable. Shri. D. Bhaskarraj, Individual in his sworn statement dated 06/02/2020 admitted that the income earned from suppression of sales has been utilized for settling the balance of trade creditors, but even after settling some of the bala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prevented by sufficient cause, the delay in filing of the appeal stands condoned and the appeal is admitted for adjudication. 3. Brief facts of the case are that the assessee filed its return of income for the assessment year 2019-20 on 11.03.2020 admitting total income of ₹.6,55,390/-. A survey under section 133A of the Income Tax Act, 1961 [ Act in short] was conducted on 06.02.2020 in the business premises of the assessee. Shri Bhaskar Raj was available in the premises at the time of survey. During the course of survey in the business premises of the assessee, a diary containing evidences for the sales particulars for the period from April 2018 to June 2018 was impounded and it was found that the entries were made for all the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment under section 143(3) of the Act dated 26.09.2021 assessing total income of the assessee at ₹.1,53,67,954/-. On appeal, after considering the submissions of the assessee as well as considering the decision in the case of CIT v Maheswari Synthetics (P.) Limited [2016] 73 taxmann.com 253 (P H), the ld. CIT(A) partly allowed the appeal of the assessee. 4. Aggrieved, the Revenue is in appeal before the Tribunal. The ld. DR has submitted that the suppression of sale for financial years 2016-17 and 2017-18 for the entire year had been found in the impounded diary. For the financial year 2019-20, evidence for suppression of sale has also been found in the computer for the period from 01/04/2019 to 04/02/2020. These facts make it clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... team has not come across any evidence to indicate that the assessee firm has adopted the same kind of suppression of sales for the whole year and moreover, the survey team has also not recorded any statement from any of the responsible persons about the suppression of sales. In the case of CIT v Maheswari Synthetics (P.) Limited (supra), wherein, the Hon ble Punjab Haryana High Court has held that a single instance of suppression of sales may not justify an interference of a consistent pattern of similar suppression all through and it was further held that once piece of evidence of suppressed sale should not result in estimation for a larger period. The ld. CIT(A) has observed that where income is sought to be estimated by way of extrapo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce indicating about the suppression of sales @ 200% of the sales return by the assessee and its ground concerns as well as any statement recorded from the responsible persons about the suppression of the sales for the entire year as found for the first three months of the financial year, we find that the ld. CIT(A) has rightly apportioned the amount of suppression among the four assessees and directed the Assessing Officer to adopt the total income determined which has been considered as the undisclosed income of the assessee and its group concerns. The GP around 20 to 32% in the same line of business in respect of any other assessees has nothing to do in the present case. We find no reason to interfere with the order passed by the ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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