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2010 (8) TMI 740 - HC - Income TaxUndisclosed income - gifts received by the assessee-firm from NRIs - Applying the previous year's gross profit rate of 4.39 per cent. to the current year, it was noticed that the gross profit of the assessee would have been ₹ 62.57 lakhs as against the declared gross profit of ₹ 41.26 lakhs giving a difference of ₹ 21.31 lakhs - Held that:- No plausible explanation had been furnished by the assessee for lower gross profit in the current year and the amount of alleged gifts amounting to ₹ 22,01,000 was almost equal to the lower gross profit declared. The trading results of the assessee were, thus, rejected and the addition of ₹ 22,01,000 was treated as undisclosed income of the assessee. In view thereof, the alleged gifts received from NRIs by the partners were the undisclosed income of the assessee-firm in the facts and circumstances of the present case - substantial question of law is answered in favour of the Revenue.
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