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2014 (5) TMI 466 - AT - Income TaxDeletion of voluntary disclosure of unaccounted income – Held that:- The assessee has furnished the supporting evidences in respect of the sale value of the unaccounted stock - The AO has not made any enquiry on the evidences given by the assessee – Relying upon Commissioner of Income-Tax, Gujarat Versus A. Raman And Company [1967 (7) TMI 2 - SUPREME Court] - the law does not oblige a trader to make the maximum profit that he can out of his trading transactions - Income which accrues to a trader is taxable in his hands - income which he could have, but has not earned is not made taxable as income accrued to him. CIT(A) has rightly observed that the assessee in its return of income offered for taxation the sale value of undisclosed stocks discovered during survey and not the full value of investment in undisclosed stock – it makes no difference to the income which would ultimately arise to the appellant during the year from unexplained stocks discovered during survey - The Revenue has not brought any material on record suggesting that the claim of the assessee is false or without any basis. Therefore, we do not find any infirmity in the order of the ld.CIT(A), the same is hereby upheld. Thus, this ground of Revenue’s appeal is dismissed. Deletion on account of fall in GP rate – Held that:- CIT(A) was rightly of the view that the argument of the assessee is found to be broadly acceptable but fall in G.P. indicates suppression of income and therefore made a lump sum addition - no such addition on account of fall in GP was warranted because the explanation given by the assessee was “broadly acceptable” to the AO and he has not given any reason for partial non-acceptance nor has he shown any specific defects in the books - the AO was not justified in making lump sum addition without pointing out any specific defect – there was no infirmity in the order of the CIT(A) – Decided against Revenue.
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