Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 1137 - AT - Income TaxAddition on account of GP rate - enhancing the GP rate - Held that:- No specific instance of inflated purchase or suppressed sale was pointed out and no specific defect was pointed out in the books of accounts. The assessee furnished the books of account with purchase/sale details, ledger and day to day stock register with quantitative details, the same had been accepted by the AO. Therefore, the ad-hoc addition made by the AO, by applying the GP rate of 0.2% was not justified, particularly when no comparable case was brought on record wherein such a profit was earned. CIT(A) rightly deleted the addition made by the AO by following his own order for the assessment year 2005-06. Addition on the basis of seized documents - Held that:- The account and the seized paper were related to Mr. Ram Chauhan. It was submitted that entries at page no. 47 onwards of the assessee’s paper book are the copies of bank statement of M/s Universal Ornaments in Allahabad Bank which can be tallied with the entries at page 76 of Annexure A-1. Therefore, all the evidences go to prove that the bunch of seized documents belonged to Mr. Ram Chauhan and the assessee has nothing to do with it. Therefore, the addition made by the AO and sustained by the CIT(A) was not justified. Unexplained payment - Held that:- AO wrongly considered the said payments as unexplained in the hands of the assessee, particularly when the name of other persons of the assessee’s family were also mentioned in the same document and nowhere it was stated that those cash payments were made by the assessee. Moreover, in the ledger account maintained by Mrs. Kumkum Kanodia, the said payments were reflected in the account of Haryana Aukaf Board and the explanation of the assessee was also that the said payments had been made by Mrs. Kumkum Kanodia.
|