Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 637 - AT - Income TaxEstimation of net profit - shipping business income - The assessee has not been able to file proper evidence relating to the shipping business along with the entire documentation relation to ownership, hired vessels and other movement details along with the revenue received from each one - The details of slotting business could not be filled - Accordingly, invoking of rule 10 of the Rules, by the Assessing Officer is justified and confirmed - Held that: estimation of net profit at 10 per cent against 7.5 per cent profit mentioned in section 44B, the estimation made by the AO appears to be reasonable and confirmed. Interests of justice - If the assessee could not file certificate, documents because of internal disturbances in its country Iran, then at least DRP could have examined the documents which were filed before it - May be one or two documents are identical, but it does not mean that all the documents are same - Therefore, in the interests of justice, set aside the order passed by the DRP and remit the matter back to the file of the Assessing Officer with a direction to examine all the documents filed even before the DRP or assessee may be required to file fresh documents which may prove that assessee was operating ships - Needless to say that assessee should be provided an adequate opportunity before coming to a conclusion. Determination of taxable income u/s 44B - Service tax - Service tax which is a statutory liability, would not involve any element of profits and a service provider is collecting the same from its customers on behalf of the Government and, accordingly, same cannot be included in the total receipts for determining the presumptive income - Therefore, set aside the order of the DRP in this regard and direct the Assessing Officer not to include the amount of service tax in the total receipts for determining the income u/s 44B.
|