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2015 (8) TMI 364 - AT - Income TaxAddition on net profit figure - addition based on print out sheet, taken out from the CPU of the assessee company’s computer, found during the course of survey u/s 133A - Held that:- Just one figure in the print out taken from the CPU/hard disk i.e. Net profit figure, cannot be added to the income of the assessee for the following reasons. (1) There is no corroborative evidence to support this figure of Net Profit; (2) The other documents found in the CPU prove that this figure is wrong. All the transactions are accepted as correct. Then the question of not accepting the result of such transactions for assessing total income does not arise. (3) The G.P. rate arrived at by taking this figure of Net profit is absurd and abnormal. It is an improbable figure. (4) Only real income can be taxed and not hypothetical incomes; (5) The burden is on the revenue to prove that a particular figure is income and this burden is not discharged in the present case. (6) The stocks found during survey do not support the stock figure in the P&L account and balance sheet found in the CPU/print out. The reconciliations of all the purchases and sales are not found fault with by the A.O. When the quantitative details of opening stock, purchases, sales are accepted then the closing stock should b arrived at from the figures only. (7) There is no allegation of fabrication of books. The results derived from the books of accounts should form the basis of assessing total income. (8) Stray and random figures cannot from the basis of determining income when these are proved to be wrong figures. In the case on hand the books of accounts have not been rejected. Under those circumstances substituting the book results with a random figures obtained from the document found i.e. P&L account in the CPU is incorrect. There are a catena of judgements which lay down that when books of accounts are not rejected, the question of estimating income does not arise. Here the figure of profit cannot be replaced without rejecting the books of accounts. Thus we delete the impugned addition of ₹ 3,06,91,356/- made by the AO as confirmed by the First Appellate Authority. - Decided in favour of assessee.
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