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2014 (8) TMI 167 - HC - Income TaxDeduction on sales tax payment – Application of net profit rate without estimation of income – Held that:- While making the assessment of income on the basis of net profit rate, the deductions towards depreciation, interest, remuneration to partners and payment to third parties have definitely been allowed - CIT(A) cannot be said to have committed any fundamental error in directing deduction towards payment of sales tax too after verification of the amount paid - in case of rejection of accounts and estimate of net profit, relevant expenses could be worked out and allowed – thus, the order of the Tribunal for allowing deduction towards payment of sales tax cannot be said to be unjustified or taking away the reasonableness of estimate of income of the assessee – Decided against Revenue.
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