Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 771 - AT - Income TaxAddition made u/s 68 of the Act – Unaccounted transaction - Whether the money seized from Shri S Sabeer is income of the assessee or not – Held that:- It is not forthcoming from the order of the assessing authority whether the equivalent amount of Saudi Rials as per the exchange rate was available with the assessee or not on that day - If the equivalent amount of Saudi Rials is not available with the assessee, then the entire transaction would be bogus and the claim of Shri S Sabeer that he received money from Smt. N Radhabai in exchange of Saudi Rials is also false – a proper enquiry was not conducted by the lower authorities to find out whether the transaction was made in exchange of Saudi Rials and if so what is the amount of Saudi Rials handed over to the assessee - In the absence of any material, the matter needs to be reexamined by the assessing officer – thus, the order set aside and the matter is remitted back to the AO for fresh adjudication. Estimation of profit – Held that:- Estimation of profit at 1% is very reasonable - It is normal that in foreign currency exchange commission is charged at 3% to 4% by similarly placed traders as found by the assessing officer - the assessing officer has estimated the net profit at 1% very reasonably, therefore, the same is confirmed – Decided against Assessee. Claim of loss – Held that:- The assessee could not produce any details as to how the loss was occurred - the assessee is also engaged in lending of money on pledge of gold jewelleries / ornaments - In the absence of details, the matter is remitted back to the AO for examination as to what exactly the claim of the assessee and from which transaction the loss occurred – Decided in favour of Assessee.
|