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2012 (2) TMI 64 - ITAT JAIPURTrading addition – CIT determined Net Profit @ 10.5 % against 12.5% determined by A.O - dis-allowance u/s 40A(3) & Section 37 by A.O. deleted by CIT – assessee contesting for determination of net profit @ 10% - Held that:- Once net profit rate has been applied, no other addition is warranted in the profit & loss account as held in the case of CIT Vs. Banwari Lal Bansidhar(1997 - TMI - 17366 - Allahabad High Court). Order of the CIT(A) in deleting the addition made u/s 40A(3) & 37 is confirmed in this regard – Decided against the Revenue. Regarding trading addition sustained by the CIT (A) by applying net profit rate at 10.5%, we find that the provisions of section 145(3) are applicable as certain defects were there. The assessee itself has shown net profit rate at 10%. The A.O. applied net profit rate at 12.5% which has been reduced to 10.5% by the CIT (A). We see no unreasonableness in the order of the CIT (A) – Decided against the assessee.
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