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2010 (11) TMI 500 - AT - Income TaxRejection of books of accounts - Net profit rate - Held that: - CIT(A) was justified to the extent that the net profit rate should be allowed subject to depreciation and interest. Since the net profit rate subject to depreciation and interest is more than 8 per cent., therefore, there was no case of confirming the addition of Rs. 3 lakhs. Interest income on FDR, NSC - interest received and interest paid - netting of interest - Held that: - it is seen that the assessee has paid interest of Rs. 73,82,842. The interest received is to the extent of Rs. 48,80,754. If the interest so received is considered under the head "Income from other sources" and the net profit rate of 8 per cent. subject to depreciation and interest is allowed then the taxable income will come to Rs. 1,19,614 as per calculation given by the learned authorised representative in his written submissions. - As against taxable income of Rs. 1,19,614, the assessee has disclosed income of Rs. 25,99,451. Hence, if the interest on fixed deposit receipt, etc., even if taxed under the head "Income from other sources" even then it will not affect the taxable income of the assessee and even if the rate of 8 per cent. is applied subject to depreciation and interest. - decision of CIT(A) deleted the addition uhpeld. Unexplained investment - gifts given, loan given and cash found during survey - assessee agreed for such additions during survey - retraction of statement - applicability of retrospective amendment to section 292C - Held that: - Before CIT(A) it has been mentioned that the Assessing Officer has not considered the retraction of the statements. - Assessing Officer was not aware of any retraction - matter remanded back to AO for reconsideration.
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