Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 35 - ITAT HYDERABADValidity of Direction given by CIT(A) - GP additions – Direction for re-computation of profits – Held that:- Assessee is in the business of purchase and sale of cars as a dealer of Maruti Udyog Ltd., and there is no scope for any business outside the books of account in this line of business of the assessee - CIT(A) has directed the AO to make a uniform addition worked out at 1% of the sales declared by the assessee, net of the sales tax - CIT(A) has noted that the AO has not brought forth any evidence to bring on record specific details of discrepancy or the unaccounted capital employed by the assessee or the modus operandi of tax evasion - the assessee has not been able to explain all the discrepancies noticed and reconcile the differences noticed with regard to purchases and sales - the average net profit rate arrived at by the assessee in each of the years works out to 0.16% - thus, the order of the CIT(A) is modified and the AO is directed to restrict the additions in each of the years, so as to result in a net profit of 0.16% on the differential turnover, over and above the profit declared by the assessee – Decided partly in favour of Assessee. Addition u/s 43B and section 40A(3) of the Act - Estimation of income from business – Held that:- The contention of the assessee is accepted that the income of the assessee from business, having been determined by resorting to estimation, there is no scope for any separate addition – Relying upon Indwell Constructions V/s. CIT [1998 (3) TMI 121 - ANDHRA PRADESH High Court] – thus, the additions are set aside - the income that may be determined by the AO for each of the years, shall not fall below the income returned by the assessee for the relevant year, and in case returned income is higher for any year(s), returned income shall be accepted – Decided partly in favour of Assessee.
|