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2014 (1) TMI 1319 - AT - Income TaxAddition made on total sales – Held that:- The Assessing Officer proposed to apply the GP rate of the immediately preceding year - whether the GP rate of immediately preceding year is 13.05% or 12.97%, it is a matter of computation from the details available on record before the Assessing Officer – So far as disallowance of 5% is concerned, Assessing Officer himself has proposed to disallow the expenses claimed in the profit & loss account - Once a GP rate is applied, all the items of trading account, viz., sales, purchases, closing stock as well as the expenses which are debited to trading account, are deemed to have been considered while working out the GP rate – thus, it cannot be again considered for the purpose of estimated disallowance - the Assessing Officer is directed to disallow 5% of the expenses excluding the purchases and other expenses which are considered while working out the gross profit rate – Decided partly in favour of Assessee.
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