Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 660 - AT - Income TaxAddition on unexplained expenditure - Held that:- First Appellate Authority has observed that there is no evidence that this represent outstanding dues or peak debits. The department has not filed copies of any seized material which can indicate that the amount worked out by the AO at ₹ 1,23,26,300/- is a gross sales not accounted by the assessee, rather, it is the peak debit/credit balance. The profit embedded in these sales can only be assessed as income of the assessee. The ld.CIT(A) after considering the result shown by the assessee estimated the gross profit of 10% on these unaccounted sales. However, on noticing that the assessee has debited unaccounted expenditure also, then, those expenditure cannot be allowed to the assessee unless it explains the source of expenditure. Once the unexplained expenditure were found to be higher than the alleged estimated gross profit, then the addition would be of the higher amount i.e. unexplained expenditure of ₹ 20,75,500/-. - Decided against revenue.
|