Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (11) TMI 863 - AT - Income TaxComputation of the total income - HELD THAT:- We find that the assessee has adopted the total sales at Rs.14,05,30,889/- in place of Rs.16,27,36,575/- for the impugned assessment year. The sales declared in the seized document was for 5 years, whereas, the impugned assessment years involved are 4 years, therefore, the corresponding deduction in sale is necessary and we do not find any error in adopting the figure at Rs.14,05,30,889/- for the impugned assessment years. None of the parties have brought anything on record in support of their contentions as to what would be the net profit in this line of business. We however after taking into account all the records of the assessees in which additional income was offered, of the view that 6% of the total sale would be the reasonable net profit of the assessees in the impugned assessment years, because he himself has shown the profit ranging between 2.38% to 9.56% and the mean was shown to be 5.85%. According to us, this is the only mode of calculation of net profit of the assessees in the given situation. We therefore, set aside the order of the CIT(A) and direct the A.O. to adopt the net profit at 6% in all the years. In one year, the assessee itself has shown the profit at 9.56% and in that year no addition is called for and the declared profit of the assessees is to be accepted. In rest of the years, the profit is to be estimated at 6% of the respective total sales.
|