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2018 (4) TMI 1567 - AT - Income TaxGross profit earned on an unaccounted / suppress sales - Held that:- Entire turnover cannot be brought to tax as such and there can be reasonable profit estimation on the above amount. Generally income is estimated at 12.5% in the case of big contracts and since assessee has already offered @ 10% profit on the accounted turnover, we are of the opinion that income can be determined on the balance of the turnover at 12.5% of the turnover. AO is directed to do so. Accordingly, assessee’s ground are partly allowed. Assessee has claimed deduction of ₹ 1 Lakh under Chapter-VIA, which was not allowed. Assessee is directed to furnish the necessary evidence to AO, who should verify and allow the claim as per the provisions of law. This ground is considered allowed for statistical purposes. AO is directed accordingly.
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