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 761 - AT - Income TaxUnverifiable purchases - addition by estimating the gross profit (G.P.) rate at 30% - Held that:- On accepting the assessee's trading results, i.e., except qua unverifiable purchases (Rs. 8.34 lacs) which have already disclosed a gross profit at the reflected rate of 18.62% on those purchases additional gross profit of 5% on such purchases would be justified, so that an addition to that extent becomes sustainable. The gross profit rate is with reference to the sales, i.e., as relatable to such purchases (approximated at 75% of sales), which is worked out at Rs. 11.12 lacs (834199 x 100/75), so that the trading addition works out to Rs. 55613/- [i.e., Rs. 11.12 lacs x 5%]. Adhoc addition in each of the two proprietary concerns - It is apparent that the same is without relation to the assessee's disclosed trading results, which are progressive, as well as the quantum of unverifiable purchases, thus there is no basis for disturbing the assessee's trading results for the year, which have been itself accepted despite the rejection of books of accounts in respect of the intervening year. Disallowance effected @ 10% qua certain expenses, viz. on staff welfare, conveyance, telephone, repair and maintenance, general office expenses. The reason stated, which is the same for all the assessment years, is lack of proper supporting vouchers, being self-made, and without proper authentication - where a disallowance qua such expenses has been made earlier, or subject to examination under sec. 143(3) assessment there can be no review of the matter in sec. 153A proceedings
|