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2016 (9) TMI 1390 - RAJASTHAN HIGH COURTCalculation of undisclosed income - profit estimation - Addition on account of loose soap bricks found unrecorded during the course of search - Held that:- Held that:- The view taken by the Tribunal is just and proper and no interference is called for as held that no credibility in the report of Shri S.C. Singhal. Further, the publication of Rajasthan Chamber of Commerce giving information about soap manufacturing is also distinguishable for the reasons that the quality of soap covered by the publication is different from the quality of soap manufactured by the assessee. This is evident not only from the comparative sales prices between the component mix of the two. In so far as the report of Rajasthan Consultancy Organisation Ltd. Is concerned, we find that the organisation is sponsored by several Financial Institutions/Banks and all are public sector undertakings. Thus, this report is more credible/reliable. Moreover, the report is based on inspection of assessee’s place and actual physical verification of process and production. We do not accept the contention of the Id. D/R that this report should not be believed. However, considering the facts and said report, we hold that it would be fair and reasonable if the weight gain is adopted at 7.5% in the case of appellant. The AO has prepared the calculation of undisclosed income at page 19 of assessment order in a table taking the weight gain at 15%. We hereby direct the AO to recalculate the undisclosed income by adopting 7.5% in place of 15% in the said table - Decided in favour of the assessee
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