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2014 (1) TMI 600 - ITAT COCHINBlock assessment - Undisclosed income for the period 1.4.92 to 31.3.93 - Held that:- The assessee has expressed its inability to produce the original books of accounts - The Tribunal is unable to test the correctness of income returned for regular assessment against the income to be determined from the estimated turnover - The responsibility to show that the income or turnover found in the seized records was already been accounted for or disclosed shall lie upon the assessee - The seized records pertained to Narakkal range consisting of 50 shops - The AO has determined the turnover for all the 110 shops on the basis of turnover noticed in the seized record pertaining to 50 shops falling in Narakkal range for 3-1/2 months - It is not correct to estimate the turnover and income for the entire 110 shops falling in three ranges, when the seized record pertained to only one range consisting of 50 shops - The Ld CIT(A) has determined the whole year's turnover for Narakkal range at Rs.1.00 crore. Since the revenue did not file any appeal against the order of Ld CIT(A), the turnover so determined by him has attained finality - The undisclosed income has to be estimated on Rs.57 lakhs - The AO has adopted the net profit rate at 5% in the succedding year - In order to maintain consistency, the net profit rate may be adopted at 5% in this year also - The undisclosed income calculated @ 5% on the suppressed turnover of Rs.57.00 lakhs shall work out to Rs.2.85 lakhs - The order of CIT(A) has been set aside - Decided against assessee. Undisclosed income for the period 01.4.93 to 31.3.94 - Held that:- In this year, the assessee has not maintained books of account and hence it has offered income on estimated basis during the course of regular assessment proceedings also - In the absence of regular books of accounts, the AO was justified in taking the aggregate amount of collections as the turnover of the assessee and estimating income thereon - The assessing officer has given set off of proportionate amount relatable to the 50 shops falling in Narakkal range while arriving at the undisclosed income of the assessee for this year - Decided against assessee.
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