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2015 (5) TMI 718 - AT - Income TaxRejection of books of accounts - estimating the net profit @5% of the turnover - CIT(A) deleted addition - Held that:- CIT(A) rightly held that the rejection of books of accounts by the AO was not sustainable and the action of the AO in estimating the net profit at 5% as per section 44AF of the Income Tax Act, 1961 (for short the Act) was misplaced and misconceived as this provision relates to retail business having turnover of less than ₹ 40 lakh per annum. The CIT(A) also noted that the estimation of profit at 5% of total turnover is not in the line of GP declared by the assessee in AY 2007-08 of 0.72% and in AY 2009-10 of 1.71% of the total turnover. Therefore, we are unable to see any valid reason to interfere with the impugned order on this issue and we uphold the same - Decided against revenue. Capital Gain on the sale of truck - CIT(A) deleted the addition - Held that:- Main question is that whether the truck was purchased and used by the assessee for the purpose of his business and answer to this question can be gathered only when the issues of fuel, drivers and cleaners salary and other wear and tear expenses on the truck after purchase i.e. after 20.8.2009 is examined and verified at the end of the AO.The issue of registered owner prior to purchase and subsequent to purchase is also relevant to proper determination and evaluation of transaction of purchase of truck which also requires verification and examination at the end of the AO. Thus, we find it just and proper to restore this issue to the file of the AO for proper examination and verification in the light of aforesaid observations - Decided in favour of revenue for statistical purposes Exemption claimed by the assessee u/s 10(37) withdrawn - enhanced compensation - Held that:- The issue is squarely covered in favour of the assessee and the CIT(A) was right in granting relief for the assessee and we have no reason to interfere with the conclusion of CIT(A) on this issue. See Chura Ram Versus Income-tax Officer, Ward 3, Panchkula [2010 (9) TMI 411 - ITAT, CHANDIGARH] - Decided against revenue.
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