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2014 (5) TMI 40 - AT - Income TaxDeletion on account of gross profit – Held that:- The AO has allowed a number of opportunities to the assessee to plead its case and lead evidences, which the assessee has not fully availed - the books of accounts of the assessee were rightly rejected by the Revenue - the expenses were clearly of allowable nature, and no reason has been advanced by the AO to disallow the same - the rate applied at 25% on the gross receipts of the assessee is unjustified and that ends of justice shall be met if flat rate of net profit at 8% is applied on the gross receipts received by the assessee, without any further deduction of any expenses or depreciation – the AO is directed to adopt the figure as income from the transport business of the assessee – Decided partly in favour of Revenue. Addition made u/s 68 of the Act – Unaccounted cash credits – Held that:- The amounts if have been accounted for as income in the succeeding assessment year 2008-2009, the same could not be doubly taxed in the relevant assessment year 2007-2008 also – thus, matter is remitted back to the AO and he is is directed to verify from record and the ledger account of the different parties, and in case, the assesee has accounted for the amounts in question as income in the succeeding assessment year 2008-2009, no addition under section 68 of the Act – Decided in favour of Revenue. Disallowance of 1/3rd of cash expenses – Held that:- Application of a flat rate of net profit at the rate of 8% to the gross receipts of the transport business of the assessee - no separate addition to the extent of 1/3rd of the cash expenses could not be made – thus, the disallowance is set aside – Decided in favour of Assessee.
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