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2015 (11) TMI 1434 - AT - Income TaxRejection of books of accounts - G.P. addition - sale of material treated as profit for working out the Gross Profit on contract receipts by AO - CIT(A) deleted part addition - Held that:- Held that:- CIT(Appeals) found that assessee had produced Hot Mix material from its plant for its contract work and the excess production was sold to outside parties leading to turnover of ₹ 43,06,319/- on this account. This finding of fact recorded by ld. CIT(Appeals) have not been rebutted through any material or evidence on record. It, therefore, stands established that amount of ₹ 43,06,319/- was the turnover and as such ld. CIT(Appeals) was justified in holding that it was not possible that there would be no cost of goods produced/sold as done by the Assessing Officer. It is well settled law that the turnover of the assessee could not represent the profit of the assessee. In the turnover of the assessee, only part amount is represented as income of the assessee. The cost of the material sold should have been deducted from the turnover in order to arrive at the profit of the assessee. The ld. CIT(Appeals), therefore, on the total turnover of ₹ 43,05,319/- of Hot Mix material correctly directed to apply profit rate for the purpose of making addition, therefore, rest of the addition of ₹ 39,61,815/- was rightly deleted. There is no error in the order of the ld. CIT(Appeals). - Decided against revenue.
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