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1 - 10 of 35 (0.96 seconds)Section 153A in The Income Tax Act, 1961 [Entire Act]
Section 132 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax vs President Industries on 20 April, 1999
officer stated that on analysis of the data seized from Shri Hiren Kalariya, it is
found that the assessee is one of the beneficiaries of unaccounted cash
transactions (recipient) worth of Rs.1,64,000/-. The assessing officer rejected book
results of the assessee by invoking provision of Section 145(3) of the Act, and by
relying on the decision of Hon'ble High Court of Gujarat in the case of CIT vs.
President Industries (2002) 258 ITR 654 (Gujarat), estimated unaccounted profit
at the rate of 25% of the unaccounted gross receipts of Rs.1,64,000/-. The
assessing officer stated that on perusal of past records of the assessee, it is noticed
that the assessee has been showing gross profit (GP) in the range of 19.52% to
18.66% in accounted sales, but it is established fact that in unaccounted sales,
such margin and profit would be higher. Thus, assessing officer, estimated profit
element of Rs.41,000/- (1,64,000 * 25%), which was treated as unaccounted
income of the assessee and added to the total income of the assessee. On appeal by
the assessee, the learned CIT(A), restricted the estimated addition @ 22% on
unaccounted gross receipts of Rs.1,64,000/-. Therefore, addition made by the
assessing officer towards unaccounted business income to the extent of
Rs.36,080/- (1,64,000 x 22%) was confirmed by ld CIT(A) and balance addition of
Rs.4,920/- ( Rs.41,000- Rs.36,080) was deleted by ld CIT(A). Now, the assessee is
in appeal before us, and contended that balance addition of Rs.36,080/- may be
entirely deleted or percentage of estimated addition @ 22% adopted by ld CIT(A)
may be reduced at a reasonable rate.