Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 447 - HC - Income TaxEstimation of income - Reassessment u/s 153A pursuant to search u/s 132 or 132A - AO rejected books of account by invoking sections 145 (3) - Held that:- The Tribunal compared G.P. rate with the cases of the business houses carrying on the same business of carpet manufacturing in the same area, furnished before the A.O. and formed an opinion that the assessee's Gross Profit rate of 28.48% could not be enhanced 32.75%. In comparable cases GP declared was very low i.e. 9% to 21%. Looking at the GP declared by the assessee in different years the Tribunal found that the assessee has shown natural GP on the basis of books of account from year to year. The revenue failed to point any special circumstances for estimation of such high profit particularly when during the course of search no incriminating material was found. - Decided against the revenue.
|