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2014 (1) TMI 753 - ITAT CUTTACKEstimation of gross profit – Books of Accounts required verification – AO was of the view that the assessee having filed the tax audit report obtained by it in accordance with the provisions of Section 44AB – Held that:- Trading in goods cannot be compared for generation of income on account of services when it is an accepted principle that retail trade returns are to be taxed at 5% in case of books are not required to be maintained by the assessee when the contractors are to be taxed at 8% as per the provisions of Section 44AD - there was no merit in the assessment order when the Assessing Officer tried to recompute the purported income embedded in the shortage which fact remains that the assessee did not get paid for it by reducing the transport receipts, when the Assessing Officer has himself has calculated at 12% of gross receipts from transportation - the taxation as brought on record an estimation of 12% to be reduced to 8% would meet the comparison as sought to be brought on record insofar as the coal trading business has also been brought on record by the Assessing Officer for the purpose of comparison - no estimation can be made on purported short receipts on account of transport business which relates to shortages of goods delivered and not because the shortage should be benchmarked fixed for comparison – Decided partly in favour of Assessee.
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