Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 495 - ITAT CUTTACKChallenging taxation of undisclosed income under the provisions of Section 143(3)/153A - Held that:- As the books of account have been maintained and duly certified having been verified by the auditors who have been authorized by the provisions u/s 44AB to submit a report certifying that the books of account were verified which books resulted in computing the returned income by the assessee as per the balance sheet and P & L account annexed with the report the CIT(A) upholding the contention of the AO on having invoked the provisions of Section 145 actually had no basis - AO has accepted the Net Profit as returned by the assessee but at a higher rate which rates has no basis for enhancement insofar as the gross margin on a turnover is directly related to the sales and the expenditures claimed leading to holding of stock which valuation has not been disputed by the AO. This indicates that all the facts remaining the same, the AO has not estimated the enhanced NP on sound footings - Disallowance of expenditures claimed u/ss.30 to 37 therefore leave no meaning to consider the NP insofar as the AO has not resorted to tinker with the gross profit rate - to proceed simultaneously u/s.143(3)/153A is defective to the extent that the AO cannot roll back from the very facts for computation of income of the assessee for the purpose of his enhancing the income - in favour of assessee.
|