Cit vs Anand Kumar Deepak Kumar on 25 August, 2006
There is nothing in the assessment orders to show that any mistake in the
books of accounts maintained by the assessee for the period for which estimate of
sales was made had been found or pointed out by the AO. In the case of CIT vs.
Anand Kumar Deepak Kumar 294 ITR 497 (Delhi) cited by the learned counsel for
the assessee, a similar issue arose for consideration and it was held by the Hon'ble
Delhi High Court that there is no presumption that such unaccounted sales as found
during the course of search would continue for post search period and the
estimation made by the AO assuming unaccounted sales for the entire year cannot
be sustained especially when there was no discrepancy noted in the books of
account for the post search period and there was no evidence found to support the
presumption of the AO. In our opinion, the ratio of the decision of Hon'ble Delhi
High Court in the case of Anand Kumar Deepak Kumar (supra) is squarely
applicable in the present case and respectfully following the same, we hold that no
addition can be made to the total income of the assessee on account of profit
earned from estimated unaccounted sales. At the time of hearing before us, the
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ITA Nos.3578&3579/Mum/2011.