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2012 (11) TMI 662 - AT - Income TaxAddition on account of alleged sundry creditors u/s. 41(1) of the Act - cessation of liability – Held that:- matter requires reconsideration at the level of the learned CIT(A). The AO made protective assessment by following the order for assessment year 2003-04 in which the Tribunal has restored the matter to the file of the learned CIT(A) for reconsideration. According to the learned Counsel for the assessee the matter is still pending before the learned CIT(A) for his consideration. Addition of gross profit at 7.43%. Revenue challenged the order of the learned CIT(A) in restricting the addition made by the AO on account of low gross profit from 15% to 7.43%. - held that:- The assessee has not challenged the rejection of the book results u/s 145(3) of the IT Act. - considering the history of the assessee we are of the view the learned CIT(A) rightly and reasonably applied the gross profit rate of 7.43% for computing business income of the assessee.
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