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2015 (10) TMI 1885 - AT - Income TaxUnaccounted sale - undisclosed income as calculated by applying GP rate - Held that:- FAA was right in holding that the amount of ₹ 25,08,740 deserves to be treated as unaccounted receipt on account of sale on which GP rate of 29.01% was applied to work out undisclosed income of ₹ 7,27,534. Ld. CIT(A) also noted that the amount of shortage in stock of physical verification of ₹ 21,958 was also included in the said amount of undisclosed income as calculated by applying GP rate. - Decided against revenue Unaccounted investment in plant and machinery - Held that:- CIT(A) rightly concluded that the assessee purchased machinery from M/s Dellantechica Ltd. and the payments were made through banking channel besides being partly financed by SBI. In absence of supporting documents as regards bank loan, hypothecation etc., the CIT(A) confirmed addition of ₹ 4,86,000 made by the AO in this regard. We further note that the CIT(A) allowed telescoping of the other investment in the fixed assets/capital and concluded that no further and separate addition is required to be made on this count since the assessee purchased this machine on 2.8.2006 in the fifth month of financial period, therefore, it can easily be inferred that sufficient amount of profit was earned by the assessee from unaccounted turnover to make investment in the aforesaid fixed asset viz. Plant and machinery, therefore, the CIT(A) was right in granting telescoping of this unaccounted investment. - Decided against revenue.
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