GLOBAL INDIA HOSPITALITY SERVICES P. LTD,MUMBAI vs. ASST CIT 8(1), MUMBAI

The assessee is aggrieved by the decision of Learned CIT(A) in partially confirming addition to the tune of Rs.26.45 lakhs out of the addition of Rs.71.17 lakhs made by the AO.

We heard learned DR and perused the record. We notice that the learned CIT(A) has passed this order in the set aside proceedings consequent to the order passed by ITAT in dated 19.12.2012.

The assessee is hospitality business. The assessee was subjected to a survey operation and it was found that the assessee has not accounted Sales invoices to the tune of Rs. 71. 17 lakhs. The assessing officer added the entire amount to the total income of the assessee. The CIT(A), in the first round of proceedings, restricted the addition to 4% of the unaccounted sales, i.e., at the rate of net profit declared by the assessee. The Tribunal, however, set aside the order of learned CIT (A) and restored the matter to his file by making certain observations about the Gross profit rate. Accordingly, in the set aside proceedings, the learned CIT(A) worked out average gross profit of three years, excluding the year under consideration. The Ld CIT(A) adopted the said rate and worked out the Gross profit and also find the difference between the same and the amount declared by the assessee. The same resulted in a difference of Rs.26.45 lakhs and the Ld CIT(A) confirmed the addition to that extent. Still aggrieved, the assessee has filed this appeal before us.

We notice that the Leonard CIT(A) has passed a reasoned order by considering the facts available on record. Further, we notice that the assessee has not filed any material before us to contradict his findings. Accordingly we confirm the order passed by first appellate authority

In the result the appeal filed by the assessee is dismissed. Order has been pronounced in the Court on 13.7.2016