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2013 (6) TMI 287 - AT - Income TaxAddition on account of net profit - as per AO appellant had not made qualitative detail of the diamond and N.P. has been shown very less - AO rejected books of accounts - CIT(A) deleted the addition -appellant is involved in the business of Diamond manufacturers, exporters and importers - Held that:- A.O. calculated the N.P. @ .16% which was actually 60%. The appellant has received job charges on polishing the diamond through sub contractor. The N.P., after adding the salary to the partner is more than 1%. A.O. had not pointed out any specific defect in the books of account, except not maintaining qualitative stock and increasing outstanding labour charges liability. The total turnover of the assessee is more than 23.45 crore of labour charges receipts which did not include cost of the diamond which shows that the appellant had paid labour charges monthly more than Rs.1 crore. Thus, the outstanding labour charges are resulted of the business activity. TDS on payment of labour charges has been deducted by the appellant and payments made through account payee cheque. Thus, no reason to intervene in the order of the CIT(A). Revenue’s appeal dismissed.
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