ITO, Ward-3(1), Gaya vs. Shri Gauri Textile Industries, Gaya
Case No: I.T.A. No.118/Pat/2020 & C.O. No.5/Pat/2021
Court: Income Tax Appellate Tribunal, Patna Bench
Date: 3/18/2025
Parties Involved
appellantITO, Ward-3(1), Gaya
respondentShri Gauri Textile Industries, Gaya
cross-objectorShri Gauri Textile Industries, Gaya
respondentITO, Ward-3(1), Gaya
Facts Summary
A survey was conducted on 07.02.2017 in the case of Shri Gauri Textile Industries, a partnership firm engaged in trading business of cotton yarn and hosiery yarn. During the survey, it was observed that the assessee had made substantial deposits in various bank accounts linked with the firm. However, the assessee disclosed significantly lower net profit compared to the turnover despite earning a high income. The cash book was maintained up to 30.01.2017 with a closing balance of Rs.6,67,503/-. S…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the addition of Rs.95,98,868/- as alleged excess stock is justified.
- 2. Whether the enhancement of GP rate to 3.51% is justified.
Precedents Relied Upon
3 precedents cited in this judgement.