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2013 (4) TMI 117 - MADRAS HIGH COURTFixation of net profit rate - Business perquisite - Deemed profit accrued U/s 28(iv) (foreign travel expenses ) - Held that:- even though the Appellate Tribunal had concurred with the findings of the first appellate authority on consideration of the materials and records produced by the assessee and the Revenue on factual aspects, it erred in fixing the net profit percentage at 4 percent for all the three years. We feel that a net profit percentage of 3 percent for all the three years would be proper and reasonable and accordingly modify the order of the Appellate Tribunal to this extent. Regarding Foreign Trip - business perquisite - Held that:- the perquisites of business are taxable under clause (iv) of Section 28 of the Act, which contemplates that the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession shall be chargeable to income tax under the head "profits and gains of business or profession we set aside the orders of the lower authorities only insofar as the determination of Rs.5,00,000/- in the absence of any details furnished by the assessee and remit the matter to the assessing officer to arrive at the quantum on the basis of materials/details furnished by the assessee in this regard. Such exercise shall be done in any case within a period of two months from the date of receipt of a copy of this order. - however, no materials have been either produced before the lower authorities or before us as to the basis on which the amount of Rs.5,00,000/- has been arrived at - matter remanded back for limited purpose for determination of correct amount to be added u/s 28(iv). - Decided partly in favor of assessee.
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