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2013 (7) TMI 82 - AT - Income TaxCondonation of delay - Held that:- As decided Vijayeswari Textiles Ltd. vs. CIT [ 2001 (10) TMI 36 - MADRAS High Court] Tribunal did not stop with the order declining to condone the delay, but considered the matter on the merits and has practically treated the appeal as being properly before it and has answered the question brought before it with reference to the material placed on record. Thus delay in filing the appeal before the CIT(A) is deemed to have been condoned by the CIT(A). Estimation of GP - @ 21.61% as reported by assessee or @ 32% as per AO as comparing with other concerns engaged in the same line of business - Held that:- As the assessee could not produce the vouchers in respect of various expenses claimed by it AO was justified in rejecting the book results. As Gross Profit rate disclosed by other concerns engaged in the similar line of business was in the range of 28.92% to 31.22% & before the tax authorities, the assessee has stated that the sale of inferior quality items was high vis-a-vis the high quality items & the profit margin in respect of inferior quality item is usually low, since the assessee could not substantiate the said explanation the rate of gross profit is required to be estimated on the basis of other external information - the issue would meet the ends of justice, if the rate of gross profit in the instant case is estimated at 28%. Partly in favour of assessee.
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