Ramesh Kumar Chhapolia, Cuttack v. Addl. CIT, Cuttack

ITSSA 10/CTK/2010 | 2003-2004
Pronouncement Date: 23-07-2010 | Result: Partly Allowed

Appeal Details

RSA Number 1022116 RSA 2010
Assessee PAN ABKPC9383R
Bench Cuttack
Appeal Number ITSSA 10/CTK/2010
Duration Of Justice 1 month(s) 8 day(s)
Appellant Ramesh Kumar Chhapolia, Cuttack
Respondent Addl. CIT, Cuttack
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 23-07-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 23-07-2010
Date Of Final Hearing 20-07-2010
Next Hearing Date 20-07-2010
Assessment Year 2003-2004
Appeal Filed On 15-06-2010
Judgment Text
( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET IN THE INCOME-TAX APPELLATE TRIBUNAL CUTTACK BENCH; CUTTACK (BEFORE S/SHRI D.K.TYAGI JM & K.K. GUPTA AM.) I.T.(SS)A.NOS.10 TO 13 /CTK/2010 ASSESSMENT YEARS: 2003-04 TO 2006-07 RAMESH KUMAR CHHAPOLIA V. THE ACIT RANGE-1 NAYA SARAK CUTTACK-753 002. AURONODAYA MARKET BLDG. PA NO.ABKPC 9383 R CUTTACK. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI D.K.SETH/M SETH RESPONDENT BY: SHRI A.K.GAUTAM ORDER PER D.K.TYAGI JM THESE ARE FOUR APPEALS BY THE ASSESSEE ASSAILING THE SEPARATE ORDERS BY THE COMMISSIONER OF INCOME-TAX (APPEALS) CUTTACK (`CIT(A) FOR SHORT) FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07. THE APPEALS RAISING IDENTICAL GROUNDS WERE TAKEN UP TOGETHER FOR HEARING AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. IT(SS) A NO.10/CTK/2010: A.Y. 2003-04 2. IN THIS CASE A SEARCH AND SEIZURE OPERATION WAS CONDUCTED IN THE ASSESSEES RESIDENTIAL PREMISES AND ALSO HIS FOLLOWING BROTHERS CONCERN: 1) RAMESH KUMAR CHHAPOLIA PROP. M/S. MARUTI TRADING CO. 2) SRI OM PRAKASH CHHAPOLIA PROP OF M/S. KONARK TRADING CO. 3) SRI GOURI SHANKAR CHHAPOLIA 4) SRI BISWANATH CHHAPOLIA PROP OF RAJASHREE MARKETING SERVICE 5) SMT SUNITA CHHAPOLIA PROP OF KONARK SALES CORPORATION. ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET DURING THE SEARCH SEVERAL INCRIMINATING DOCUMENTS WERE SEIZED FROM THE OFFICE PREMISES AND RESIDENCE OF THE ASSESSEE. CONSEQUENTLY NOTICE U/S.153A OF THE I.T.ACT 1961 WAS ISSUED ON 10.1.2007 ASKING THE ASSESSEE TO FILE THE RETURN. THE ASSESSEE FILED HIS RETURN OF INCOME ON 3.12.2007 DECLARING TOTAL INCOME OF RS.7 65 653/-. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S.153A/143(A) DETERMINING THE TOTAL INCOME AT RS.1 41 11 010/- INTER ALIA MAKING FOLLOWING ADDITIONS:- I) ADDITION ON ACCOUNT OF SUPPRESSED SALE : RS.1 21 44 539/- II) INTEREST ON UNSECURED LOAN : RS. 23 735/- 3. ON APPEAL LD CIT (A) PARTLY ALLOWED THE ASSESSEES APPEAL AND FURTHER ENHANCED RS.10 00 000/- TOWARDS UNDISCLOSED INVESTMENT. BEING AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE FIRST GROUND RAISED IN THIS APPEAL IS AGAINST SUSTENANCE OF ADDITION OF RS.18 16 365/- UNDER HEAD UNDISCLOSED PROFIT AS THE RATE OF GROSS PROFIT APPLIED AT 18.95%. 5. BRIEF FACTS APROPOS THIS GROUND ARE THAT ON VERIFICATION OF THE SEIZED MATERIALS RKC-15 IT WAS FOUND THE UNACCOUNTED SALES OF RS.1 27 44 539/- CONTAINING 86 PAGES REFLECTS FROM DATES 17.4. TO 4.12 AS REPRODUCED AT PAGES 7 TO 15 OF THE ASSESSMENT ORDER. BEFORE THE AO THE ASSESSEE HAD POINTED OUT THAT ALL THE PURCHASES ARE DULY ACCOUNTED FOR IN THE REGULAR BOOKS OF ACCOUNT. HOWEVER THE ASSESSEE HAD OFFERED RS.6 LAKHS TO AVOID ANY FURTHER LITIGATION IN FUTURE AND TO BUY PEACE WITHOUT GIVING ANY EVIDENCE. THE AO ACCORDINGLY AFTER DETAILED DISCUSSION MADE AN ADDITION OF RS.1 21 44 359/- (RS.1 27 44 539 RS.6 00 000/-). 6. BEFORE THE CIT (A) THE ASSESSEE SUBMITTED AS UNDER: ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET THE ADDITION HAS BEEN COMPUTED AS SUPPRESSED SALES. THE LEARNED A.0 COMPUTED THE SUPPRESSED SALES FROM THE ENTRIES IN SEIZED DOCUMENTS RKC 15. THESE ENTRIES HAVE BEEN LISTED BY THE A. 0. IN THE ASSESSMENT ORDER IN PARA 4 AT PAGES 7 TO 15 . AS CAN BEEN SEEN FROM THE DATES MENTIONED THEREIN THE DATES ARE INCOMPLETE AND CAN NOT BE CORRELATED TO THE YEAR UNDER CONSIDERATION. THE A. 0. ALSO CONFIRMS THIS IN PARA 3 (SUB-PARA 3) THAT THE YEAR OF SUCH TRANSACTION IS NOT EASILY DECIPHERABLE FROM THE SEIZED MATERIAL AT THE FIRST NOTICE . HE HOWEVER GIVES STRESS AT A DATE MENTIONED IN PAGE 7] OF RKC 15 AS 05.12.2002 AND CONVENIENTLY IGNORES OF ANOTHER DATE MENTIONED IN THE SAME PAGE AS 03.02.1998 AND 24.02.1998. AS SUCH CONSIDERATION OF THE ENTRIES IN RKC 15 FOR THE YEAR UNDER CONSIDERATION IS ILLOGICAL AND ARBITRARY AND OTHERWISE UNJUSTIFIED . MOREOVER THE APPELLANT INCURS TURNOVER FOR HIS OWN TRADING AS WELL AS FOR CONSIGNMENT BUSINESS WHEREFROM HE DERIVES INCOME AS COMMISSION. HE RECEIVED COMMISSION DURING THE YEAR AT RS. 98 254/-. THIS IS 1.56% OF THE CONSIGNMENT SALES AMOUNTING TO RS. 62 96 840/-. APPELLANTS OWN TURNOVER WAS RS. 48 09 400/- DURING THE YEAR. THUS IN THE WORST CASE OF INFERENCE THE TOTAL TURNOVER IN RKC 15 CANNOT BE TAKEN TO BE APPELLANTS OWN TURNOVER. NOW AS THE NOTINGS ARE NOT THE ADDITIONAL TURNOVER DISCLOSED BUT THE GROSS TURNOVER WHICH INCLUDES THE DISCLOSED TURNOVER TOO. THIS IS EVIDENT FROM THE Q. NO.58 QUOTED AT PAGE 6 OF THE TURNOVER. FURTHER THE LEARNED A. 0. SHOULD HAVE COMPUTED THE ELEMENT OF INCOME EARNED BY THE APPELLANT BY TAKING INTO RATION TO THE FACT THAT HE ALSO REPAYS THE UNACCOUNTED MONEY TO THE SUPPLIER OVER AND THE BILL AMOUNT FOR PURCHASE OF GOODS. AND THAT IS WHY TO AVOID LITIGATION AND TO BUY PEACE THE APPELLANT DECLARED AN INCOME OF RS. 6 00 000/- FOR THE YEAR UNDER CONSIDERATION ALTHOUGH NOTHING SPECIFIC HAS BEEN DETECTED BY THE DEPTT. DURING SEARCH. IN THE CIRCUMSTANCES THE INCOME RETURNED SHOULD HAVE BEEN ACCEPTED AND THE ADDITION OF RS. 1 21 44 539/- IN EXCESS OF RS. 6 00 000/- AS MADE IS UNWARRANTED AND UNLAWFUL. AGAIN ON 22.4.10 THE A/R OF THE APPELLANT FILED SUBMISSION AS UNDER: THE APPELLANT IS TRADING IN PAPER OF DIFFERENT KINDS. THE NATURE OF DEALINGS ARE OF TWO TYPES VIZ. (I) OWN DEALINGS AND (II) DEALINGS ON COMMISSION BASIS ON CONSIGNMENT SALES. THE TOTAL SALES AS DISCLOSED BY THE APPELLANT ARE AS UNDER. SALES ON OWN DEALINGS RS. 48 09 400/- CONSIGNMENT SALES RS. 62 96 840/- RS.1 11 06 240/- THE GROSS PROFIT ON OWN SALES IS RS.2 60 553/- (5.42%) AND ON CONSIGNMENT SALES THE COMMISSION RECEIVED AMOUNTED TO RS. 98 254/- (1.56%) . THE CONSOLIDATED PROFIT ON THE TOTAL SALES AMOUNTS TO RS.3 58 807/- WHICH IS 3.23%. ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET THE OBJECTION IS AGAINST THE ADDITION OF RS.1 21 44 530/- . THE ADDITION HAS BEEN COMPUTED AS SUPPRESSED SALES . THE LEARNED A. 0. COMPUTED THE SUPPRESSED SALES FROM THE ENTRIES IN SEIZED DOCUMENTS RKC 15 . THESE ENTRIES HAVE BEEN LISTED BY THE A. 0. IN THE ASSESSMENT ORDER IN PARA 4 AT PAGES 7 TO 15 . AS CAN BEEN SEEN FROM THE DATES MENTIONED THEREIN THE DATES ARE INCOMPLETE AND CAN NOT BE CORRELATED TO THE YEAR UNDER CONSIDERATION. THE AU. ALSO CONFIRMS THIS IN PARA 3 (SUB-PARA 3) THAT THE YEAR OF SUCH TRANSACTION IS NOT EASILY DECIPHERABLE FROM THE SEIZED MATERIAL AT THE FIRST NOTICE . HE HOWEVER GIVES STRESS AT A DATE MENTIONED IN PAGE 71 OF RKC 15 AS 05.12.2002 BUT CONVENIENTLY IGNORES OF ANOTHER DATE MENTIONED IN THE SAME PAGE AS 03.02.1998 AND 24.02.1998 . AS SUCH CONSIDERATION OF THE ENTRIES IN RKC 15 FOR THE YEAR UNDER CONSIDERATION IS ILLOGICAL AND ARBITRARY USE UNJUSTIFIED. THE LEARNED ASSESSING OFFICER TOTALED THE ENTIRE NOTINGS TOWARDS IN RKC-15 WHICH AMOUNTED TO RS. 1 27 44 539/- AND TREATED THE SAME AS SALES OUTSIDE THE BOOKS OF HELD THAT THE SAME AS INCOME OF THE ASSESSEE . THE REASON AS PER THE AO BEING THAT NO CONCEALMENT OF PURCHASE HAS BEEN FOUND DURING SEARCH. THE AS PER BOOKS OF THE ASSESSEE IS AS UNDER: NOW AS PER THE A. 0. THE ENTIRE SALES AS PER RKC 15 ARE AGAINST THE PURCHASE WHICH HAVE BEEN RECORDED IN BOOKS AND ACCORDINGLY THE RE-CAST TRADING A/C. WOULD BE AS UNDER: OPENING STOCK 5 64 526.00 SALE: PURCHASE INCLUDING PER BOOKS 48 09 400.00 INWARD FREIGHT ETC. 41 70 418.00 PER RCK 15 1 27 44 539.00 (A) 47 34 944.00 1 75 53 939.00 CLOSING STOCK 1 86 097.00 (B) 1 77 40 036.00 ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET AS PER ABOVE THE SALES ARE RS. 1 75 53 939/- AND THE GROSS PROFIT IS RS. 1 30 05 092/- THE SAME AMOUNTS TO 74% WHICH IS VERY MUCH IMPROBABLE AND ABSURD IN THE LINE OF BUSINESS. THE APPELLANT WHILE FURNISHING THE RETURN U/S. 153 ASSUMED THE INABILITY TO PROVE BEYOND DOUBT THE GENUINENESS OF HIS ENTIRE AFFAIRS ESTIMATED THE PROBABLE EARNINGS ON THE SALES AS PER RKC 15 AT RS. 6 00 000/- AND INCLUDED IN HIS TOTAL INCOME IN THE RETURN OF INCOME FURNISHED U/S. 153. THIS COMES TO ABOUT 4.7% OF THE EXTRA SALES I.E. RS 1 27 44 539/- . THIS IS AT PAR THE GROSS PROFIT DISCLOSED AS PER BOOKS WHICH IS 5.42%. THE APPELLANT DISCLOSED THE EXTRA INCOME OF RS.6 00 000/- ON MERE ASSUMPTION BUT NOT ON ADMISSION AND MAINLY TO AVOID LITIGATION AND TO BUY PEACE. FOR EVERY SALES THERE HAS TO BE PURCHASE AND THE INCOME EARNED BY A PERSON IS THE PROFIT ELEMENT IN THE SALES AND NOT THE ENTIRE SALES. THE LEARNED A. 0. ACCEPTED THE RATIO OF PROFIT ON ESTIMATED TURNOVER AS PER BOOKS WHICH IS 5.42% . WHEREAS BY TREATING THE ENTRIES OF RKC AS EXTRA SALES OUTSIDE THE BOOKS BUT OUT OF THE PURCHASE RECORDED IN THE BOOKS THE RESULTANT PROFIT AMOUNTED TO 74% OF THE TOTAL SALES. IN THE CIRCUMSTANCES THE ACTION OF THE LEARNED A. 0. IS ILLOGICAL AND UNREASONABLE AND THEREFORE UNJUST /IED . THE INCOME AS RETURNED SHOULD HAVE BEEN ACCEPTED BEING REASONABLE. THIS WILL NOT BE OUT OF PLACE TO MENTION THAT THE LEARNED A. 0. IN THE ASSESSMENT YEAR 2004-05 HAS ADOPTED A GROSS PROFIT OF 7.3%. HOWEVER THE APPELLANT HAS NO OBJECTION TO THE ADDITION OF REASONABLE GROSS PROFIT ON THE SALES ENHANCED BY 40% OF THE DISCLOSED SALES. ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET 6. AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSE LD CIT (A) OBSERVED THAT IF THE CONCLUSIONS OF THE AO WERE TO BE ACCEPTED THEN THE GROSS PROFIT WOULD BE 74% WHICH IS IMPOSSIBLE IN THIS LINE OF BUSINESS. HOWEVER FOLLOWING THE APPELLATE PROCEEDINGS FOR THE ASSESSMENT YEAR 2006-07 IN ASSESSEES OWN CASE HE OBSERVED THAT THE ENTIRE TURNOVER OF THE ASSESSEE COULD NOT BE TAKEN AS INCOME AND ACCORDINGLY ADOPTED THE G.P. RATE AT 18.69% OF RS.1 27 44 539/- WHICH WORKED OUT TO RS.24 16 365. SINCE THE ASSESSEE HAD OFFERED RS.6 LAKHS THE UNDISCLOSED INCOME WAS SUSTAINED AT RS.18 16 365/-. BEING AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL 7. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RECORD OF THE CASE. THE ASSESSEE DEALS IN PAPER BUSINESS. THE AO MADE THE ADDITION OF RS.1 21 44 539/- TO THE INCOME OF THE ASSESSEE TREATING THE ENTIRE UNDISCLOSED SALES AS PER RKC-15 AS THE INCOME OF THE ASSESSEE. THE CIT (A) WAS OF THE VIEW THAT THE ENTIRE UNDISCLOSED SALES CANNOT BE TREATED AS INCOME OF THE ASSESSEE. THEREFORE HE RESTRICTED THIS ADDITION TO RS.18 16 365/- BY APPLYING THE G.P. RATE OF 18.96% ON THE TURNOVER OF THE ASSESSEE AND THEN REDUCING IT BY RS.6 00 000/- OFFERED BY THE ASSESSEE AS HIS UNDISCLOSED INCOME. WE FURTHER FIND THAT THE AO IN SIMILAR FACTS FOR THE ASSESSMENT YEAR 2004-05 HAS ADOPTED GROSS PROFIT AT 7.3%. THUS IN OUR CONSIDERED OPINION IT WOULD MEET THE ENDS OF JUSTICE IF THE UNDISCLOSED INCOME IS RESTRICTED TO 7.3% OF THE TOTAL UNDISCLOSED SALES. WE HOLD ACCORDINGLY. THIS GROUND IS PARTLY ALLOWED. 8. GROUND NO.2 IS AGAINST CONFIRMATION OF ADDITION OF RS.23 735/- UNDER THE HEAD INTEREST ON UNSECURED LOANS. 9. AFTER HEARING BOTH THE SIDES WE FIND THAT THE ASSESSEE HAD TAKEN UN SECURED LOANS OF RS.10 00 000/- FROM THREE PERSONS AND HAD UTILIZED FOR THE BUSINESS PURPOSES OF THE SISTER CONCERNS OF THE ASSESSEE. THE LOANS WERE REFLECTED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE. HOWEVER THE ASSESSING OFFICER MADE AN ADDITION OF 10 23 735/- U/S.68 OF THE ACT. THE LD CIT (A) ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET ACCEPTED THE LOANS OF RS.10 00 000/- AS GENUINE AND SUSTAINED THE INTEREST OF RS.23 735/-. SINCE THE LOANS ARE INTEREST BEARING THE MONEY THEREFROM HAS BEEN ADVANCED FREE OF INTEREST TO M/S. KONARK TRADING COMPANY SISTER CONCERN OF THE ASSESSEE. THEREFORE IT CANNOT BE SAID THAT THE LOANS WERE UTILIZED FOR THE BUSINESS PURPOSES OF THE ASSESSEE. ACCORDINGLY THE LD CIT(A) IS RIGHT IN ADDING THE INTEREST IN THE TOTAL INCOME OF THE ASSESSEE. THIS GROUND IS DISMISSED. 10. GROUND NO.3 IS AGAINST ENHANCEMENT OF RS.10 00 000/- MADE BY THE CIT (A) UNDER HEAD UNDISCLOSED INVESTMENT. 11. AFTER HEARING BOTH THE SIDES WE FIND THAT DURING APPELLATE PROCEEDINGS THE CIT(A) FOUND THAT THE ASSESSEE HAD NOT SHOWN ANY INVESTMENT IN STOCK FOR EFFECTING THE UNDISCLOSED SALES. THE AO HAS ALSO NOT MADE ANY ADDITION FOR THE SAME. HE THEREFORE ASKED THE ASSESSEE TO EXPLAIN WHY THE UNEXPLAINED INVESTMENT IN STOCK FOR EFFECTING THE UNACCOUNTED TURNOVER NOT BE ADDED TO THE INCOME OF THE ASSESSEE. IN REPLY THE ASSESSEE SUBMITTED THAT AS THE DEALINGS WERE OF THE SAME LINE OF TRADE NO EXTRA INVESTMENT WAS NECESSARY. HOWEVER IN ANY CASE THE INVESTMENT MAY BE ASSESSED AND ADDED TO THE TOTAL INCOME TO THE EXTENT OF 5% OF THE UNDISCLOSED TURNOVER. THIS EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTABLE TO THE CIT(A) AS THE UNACCOUNTED TURNOVER DURING THE YEAR AS COMPUTED BY THE AO AND NOT DOUBTED BY THE ASSESSEE WAS RS.1 27 44 539/-. HE FURTHER OBSERVED THAT IN THIS LINE OF BUSINESS IN WHICH THE ASSESSEE IS ENGAGED THE GOODS ARE TAKEN ON CREDIT AND THE PAYMENT CYCLE TAKES ABOUT 25 TO 30 DAYS. THUS APPROXIMATELY THE STOCK FOR ONE MONTH HAS TO BE MAINTAINED IN THE BUSINESS AND THEREFORE MADE AN ADDITION OF RS.10 LAKHS FOR UNEXPLAINED INVESTMENT IN THE STOCK. BEFORE US THE ASSESSEE REITERATED THE SAME SUBMISSIONS MADE BEFORE THE CIT (A). WE FIND THAT THE ASSESSEE HIMSELF HAS AGREED FOR AN ADDITION TO THE TOTAL INCOME TO THE EXTENT OF 5% OF THE UNDISCLOSED TURNOVER WHICH APPEARS TO BE REASONABLE. THE AO IS DIRECTED ACCORDINGLY. THIS GROUND IS PARTLY ALLOWED. ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET 12. IN THE RESULT THIS APPEAL IS PARTLY ALLOWED. IT(SS) A NO.11/CTKI/2010: A.Y. 2004-05 13. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST DISALLOWANCE OF RS.76 780/- UNDER THE HEAD INTEREST ON UNSECURED LOANS. UNDER THE SIMILAR GROUND TAKEN IN ASSESSMENT YEAR 2002-03 WE HAVE UPHELD THE DECISION OF THE CIT (A) DISALLOWING THE INTEREST. IN LINE WITH OUR SAID DECISION ABOVE WE UPHOLD THE ORDER OF THE CIT (A). THIS GROUND IS REJECTED. 14. IN THE RESULT THIS APPEAL IS DISMISSED. IT (SS) A NO 12/CTK/2010: A.Y. 2005-06. 15. THE FIRST GROUND IS AGAINST ADDITION OF RS.15 62 595/- AS SUSTAINED BY LD CIT (A) UNDER THE HEAD PROFIT ON UNDISCLOSED SALES. 16. THIS GROUND IS SIMILAR TO GROUND NO.1 FOR THE ASSESSMENT YEAR 2002-03. IN LINE WITH ABOVE DECISION WE RESTRICT THE DISALLOWANCE TO 7.3% OF THE TOTAL UNDISCLOSED SALES. THE AO IS DIRECTED ACCORDINGLY. THIS GROUND IS PARTLY ALLOWED. 17. THE SECOND GROUND IS AGAINST DISALLOWANCE OF RS.73 603/- UNDER THE HEAD INTEREST ON UNSECURED LOANS. 18. THIS GROUND IS SIMILAR TO GROUND NO.2 FOR THE ASSESSMENT YEAR 2002-03. IN LINE WITH OUR SAID DECISION THIS GROUND IS DISMISSED. 19. IN THE RESULT THIS APPEAL IS PARTLY ALLOWED. IT(SS) A NO.13/CTK/2010: A.Y. 2006-07 ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET 20. THE FIRST GROUND IS AGAINST ADDITION OF RS.17 00 000/- AS SUSTAINED BY LD CIT (A) UNDER THE HEAD PROFIT ON UNDISCLOSED SALES. 21. THIS GROUND IS SIMILAR TO GROUND NO.1 FOR THE ASSESSMENT YEAR 2002-03. IN LINE WITH ABOVE DECISION WE RESTRICT THE DISALLOWANCE TO 7.3% OF THE TOTAL UNDISCLOSED SALES. THE AO IS DIRECTED ACCORDINGLY. THIS GROUND IS PARTLY ALLOWED. 22. THE SECOND GROUND IS AGAINST DISALLOWANCE OF RS.78 560/- UNDER THE HEAD INTEREST ON UNSECURED LOANS. 23. THIS GROUND IS SIMILAR TO GROUND NO.2 FOR THE ASSESSMENT YEAR 2002-03. IN LINE WITH OUR SAID DECISION THIS GROUND IS DISMISSED. 24. IN THE RESULT THIS APPEAL IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 23 RD JULY 2010. SD/- SD/- (K.K.GUPTA) (D.K.TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 RD JULY 2010 PARIDA COPY TO : 1. ASSESSEES- 2. ASSESSING OFFICER 3. CIT 4. D.R. ITAT CUTTACK. TRUE COPY BY ORDER SR. PVT. SECRETARY ( WORD TO PDF CONVERTER - UNREGISTERED ) HTTP://WWW.WORD-TO-PDF-CONVERTER.NET