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2015 (8) TMI 706 - AT - Income TaxEstimation of 8% profit on disclosed contract receipts - additional income on account of entries found in the diary seized in the search of Mr.Ashok Kumar Chowta - Held that:- As far as disclosed contract receipts in the books of account are concerned, as already stated, the addition was made only on the basis of statement recorded at the time of survey. The books of account have not been rejected by the AO u/s. 145 of the Act. In such circumstances, we are of the view that the estimation of profits at 8% of the contract receipts disclosed in the books of account cannot be sustained. The profits disclosed by the assessee as per the books of account in respect of disclosed contract receipts for AY 2005-06, 2006-07 & 2007-08 should be accepted as declared by the assessee. We may also add that neither the AO nor the CIT(Appeals) have given any reason for making the aforesaid addition. - Decided in favour of assessee.
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