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2. First we will take Revenue's appeal in ITA No.2155/Ahd/2012. Revenue has raised following grounds:-

[1] On the facts and circumstance of the case and in law, the Ld. CIT(A)-I, Surat has erred in deleting the addition of Rs.1,13,24,749/- made by the A.O. and in directing the A.O. to add the net profit of Rs.2,27,573/- of Swastik Polymers, without appreciating the fact that the assessee has suppressed sale details by showing decreased turnover.

[2] On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer.

10. The ld. AR submitted that the addition cannot be made for the gross sales and can be only made to the extent of N.P. embedded in the sales.

11. We have heard the rival contentions and perused the material placed on record. Through this appeal for Asst. Year 2007-08 solitary ITA No. 2155 & 2156 along with Cos 222 & 223/Ahd/2012 6 Asst. Year 2007-08 & 2008-09 grievance of Revenue is against the order of ld. CIT(A) against deletion of Rs.1,13,24,749/- and directing the Assessing Officer to add net profit of sister concern M/s Swastik Polymers at Rs.2,27,573/- without appreciating the facts that assessee has suppressed sales as well as by showing decreased turnover. We observe from the records that case of the assessee was reopened by issuing notice u/s 148 of the Act on the basis of information received from Central Excise and Customs, Surat and assessment proceedings u/s 143(3) r.w.s. 147 of the Act were carried out. As per information of Central Excise Department, during the course of search at Abhishek Market, Ring Road, Surat, it was found that the same premises was used as office of M/s Subham Polymers proprietary concern of Shri Ashokkumar C. Dharewa, HUF(assessee) as well as M/s Swastik Polymers being trading firm owned by Shri Bimalkumar C. Dharewa who is brother of Ashokkumar C. Dharewa, Karta of HUF. Central Excise Department was of the view that assessee and the sister concern i.e. Subham Polymers and Swastik Polymers which are being run from the same office premises has bifurcated the turnover in order to keep the total turnover below the minimum exemption limit of Rs.1 crores leading to evasion of excise duty. Accordingly, Central Excise Department clubbed the turnover of both the concerns and calculated the excise duty payable at Rs.8,10,795/- for Asst. Year 2007-08 (F.Y.2006-07) by calculating in following manner :-