AO completed assessment after making lump sum addition and no appeal was preferred by assessee before CIT(A). Later, it was observed that there was a difference between total turnover declared in Profit & Loss Account and Sales Tax Assessment Order, hence, order u/s 263 was passed by CIT by setting aside assessment order passed by A.O. with giving direction to AO to make necessary verification of total sale/turnover from books of accounts and other related documents. During the remand proceedings, the AO made addition of entire differential sales amount and disallowed loss as the assessee did not submit details required. On appeal, no relief was granted by the CIT(A). On appeal before the Hon’ble ITAT, it was held that entire sale consideration cannot be treated as income of assessee but addition could be made only to extent of estimated profits embedded in sales while keeping in view GP declared by assessee on total sales. (AY. 2009-10)