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2012 (10) TMI 486 - AT - Income TaxUnaccounted labour charges - CIT(A) deleted the addition - Held that:- Considering the comparative position of the year under appeal and the immediately preceding year the percentage of labour charges to the export turnover has reduced to less than half of the immediately preceding year which was accepted by the Revenue. Thus even when the assessee’s accounts are to be rejected and income has to be computed to the best judgment of the AO, there would not be any justification for disallowance of even part of the labour expenses. Even in a best judgment assessment there would not be any justification for making any addition, especially when the percentage of net profit is also better than the preceding year - against revenue.
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