Peak calculation method is applied for computing profit from unaccounted cash sales

Himanshu L. Shethia (HUF) Vs ITO (ITAT Ahmedabad) Held that the correct method is applying peak calculation method to compute the profit from the unaccounted cash sales made by the assessee. Facts- The appellant is Karta of HUF and running whole-sale trade in cloth in the name and style of “M/s. Himanshu Fabrics”. As per AIR, was seen that the assessee has made cash deposit to the tune of Rs.1,09,30,500/- in the savings bank account. During the course of survey operation, excess stock of cloth to the tune of Rs.51,21,318/- was found pertaining to the assessee and the same was disclosed as ...