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2022 (9) TMI 244 - ITAT KOLKATANet profit estimation - Addition in respect of Jamshedpur Branch - assessee has shown lower GP rate by inflating expenditure and lowering income from job charges - AO has applied net profit @5.8% to the turnover of the head office thereby making an addition on the ground that the assessee has not maintained quantitative/qualitative details of stocks and also that unverifiable sales of 704.330 M.T to parties which were not identifiable - HELD THAT:- While deleting the addition the ld CIT(A) recorded a finding a fact that the AO has not found any discrepancy/defects in the books of accounts and observed that the sales and purchases were made in cash. CIT(A) also noted that there were no finding of the AO as to the fact that the sales were bogus and non genuine . CIT(A) has noted that the similarly in respect of Pune Branch which was dealing in iron and steel scrap with local companies whereas head office was engaged in dealing with trading in Iron scrap purchased from third parties and selling it to Tata Motors, Jamshedpur and thus rejected the observations of the AO that the assessee has not mentioned the job and scrap thereof and also the application of NP of 6% in the Pune Branch thereby making an addition - We observe the ld CIT(A) has passed a very reasoned and speaking order while deleted the addition and therefore we do not find any infirmity in the order of Ld. CIT(A) and accordingly upheld the same. Decided against revenue.
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