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2012 (12) TMI 182 - AT - Income TaxAddition – net profit rate applied by the CIT(A) at 6.5 % as against net profit rate of 4.7 % shown by the assessee. – assessee is a Company doing work of construction - search - unaccounted money on purchase and sale of property – alleged that the assessee company had shown low gross profit by pointing out that the assessee has not furnished the required detailed – Held that:- The verifiable expenses which are to the extent of fixed in nature, also for element of variability as is clear from above table - CIT(A) has considered net profit rate of 6.5 % at constant and fixed rate for all the years, which is not correct. As per our considered view, the disallowance if at all has to be made, had to be made after considering the verifiability of these expenses year on year basis. - AO directed to disallow the expenses as per the calcuation sheet. Addition on account of sale of plot - held that:- Agreement to sale was found during search indicating sale consideration at Rs. 1,42,70,256 - property was sold for this much of consideration and Rs. 20 lakhs was also paid in advance - assessee had received Rs. 71 lakhs out of which Rs. 41 lakhs had been accounted for and the balance of Rs. 30 lakhs received in cash was not recorded in the books of account, which was also offered as income from undisclosed sources. Since the alleged cancellation deed was found during course of search accompanied by the statement recorded u/s 132(4) clearly indicate that there was no cancellation of plot. Accordingly, the Assessing Officer was justified in treating the difference in sale consideration actually disclosed in the return as compared to the sale consideration found recorded on the sale agreement, which was found during course of search - addition upheld
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