DCIT CIRCLE-2(1), GWALIOR vs. GDP AGRO & FOOD, GWALIOR

The loose papers indicated unaccounted purchases for Rs.37.41 Crores. The Ld. AO estimated profit of Rs.8.65% on the same and made addition of Rs.323.61 Lacs. The Ld. AO also estimated unaccounted closing stock against the same for Rs.151.82 Lacs and further added the same to the income of the assessee.

During first appeal, the assessee’ submissions were subjected to remand proceedings. Based on the same, Ld. CIT(A), in para 5.1.3, noted that note books as seized vide Annexure B-7 contained offers for purchase. The offers which are accepted are recorded in the regular books of accounts. The Ld. AO accepted the fact that the purchases for Rs.11.07 Crores were found recorded in regular books of accounts. This fact was supported by affidavit of some of the brokers confirming the above facts. In fact, one broker was summoned who had given affidavit on oath. Considering all these facts, Ld. CIT(A) deleted impugned additions against which the revenue is in further appeal before us.

The Ld. CIT(A) has rendered factual finding that the seized notebook contained mere offers for purchases. The offers which were accepted were found recorded in the regular books of accounts. The Ld. AO accepted the fact that the purchases for Rs.11.07 Crores were found recorded in regular books of accounts. This fact stood corroborated by the affidavit of brokers. This position remains uncontroverted before us. There is no other corroborative evidence supporting the conclusion of Ld. AO. This being so, no interference is required in the impugned order.

The appeal stands dismissed.