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2014 (5) TMI 847 - ITAT MUMBAIAddition by estimation of gross profits @25% - Assessee shown profits @10.85% - Held that:- The wages register was found tampered, the Revenue stamps found affixed were not even in existence during the period of payment as is evidenced by the report of the General Manager, Indian Security Press, Nashik - The assessee is not only a contractor in making furniture but is also an interior decorator - The gross profit margin of 10.85% shown by the assessee appears to be much lower in this line of the business added to this, the wages are not verifiable - the AO has also not brought on record any comparable justifying his adoption of GP margin at 25% - neither the assessee has justified his claim of profit and at the same time found to have manipulated the wages register which amounts to filing of inaccurate particulars and tampering with the profit nor the Revenue has brought any cogent material evidence on record to justify the adoption of GP rate of 25% - there was no choice but to make a fair estimate of the profit – the AO is directed to restrict the adhoc addition of Rs. 20,00,000 – Decided partly in favour of Assessee.
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