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2015 (11) TMI 1750 - AT - Income TaxUnexplained expenditure in respect of undisclosed/suppressed sales - profit estimation - CIT-A proceeded to estimate the assessee’s profit @18% of the turnover after recording that entities in the same line of business - Held that:- Merely because the expenditure incurred by the assessee in respect of this turnover has not been proved does not mean that there was no expenditure incurred at all and such a plea cannot be accepted. In such circumstances, an estimate of the probable profit has to be made having regard to the surrounding circumstances, ground realities, corroborative evidence in the form of profits shown in comparative cases and other factors that are relevant to determine the real income of the assessee. CIT(A) has followed the correct and reasonable approach in estimating the profit on the suppressed turnover worked out by the AO which has not been questioned by the assessee. Revenue except for raising the ground has not been able to contravene the finding of the learned CIT(A) and we are,therefore, no interference is called for in the finding of the learned CIT(A) in the impugned order on this issue. - Decided against revenue
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