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2014 (1) TMI 1323 - ITAT AGRAAddition made on turnover – Held that:- The NP rate of 7% was applied by the CIT(A) on the basis of the previous history explained by the assessee and the same was found quite reasonable – On the basis of these findings of fact and no adverse material found against the assessee, would clearly show that no evidence was found during the course of survey that the turnover of the assessee has increased substantially as against the turnover declared in the earlier years - thus, the authorities below instead of considering the history of the assessee for the purpose of estimating the turnover of the assessee should not have applied the stock turnover ratio method for the purpose of computing turnover of the assessee - Method applied was not proper in the facts and circumstances of the case and in absence of any adverse material on record against the assessee, the proper and reasonable course should have been to estimate the turnover of the assessee considering the history of the assessee which was found reasonable basis for applying NP rate of 7% - in none of the earlier years turnover of the assessee have exceeded Rs.8.25 lacs - considering the past history of the assessee, the turnover of the assessee is estimated at Rs.15 lacs upon which 7% profit rate the profit would be estimated at Rs.1,05,000/- - The assessee has already declared income of Rs.72,000/- on estimate basis and after giving benefit of the same, resultant addition would be maintained at Rs.33,000 – the order of the CIT(A) modified – Decided partly in favour of Assessee.
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