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2015 (11) TMI 1756 - AT - Income TaxEstimation of income of the assessee @ 5% on the cost of goods sold - Non maintenance of books of accounts - Held that:- We find that the assessee has not maintained any books of account and therefore, the estimation of income is justified. It is only the rate at which the income is to be estimated is before us. A.O. has estimated the income at 5% of the cost of goods sold, while the assessee is seeking the estimation at 3% of the cost of goods sold. In the case before us, the assessee is agreeable to the estimation of income at 3% of the cost of goods sold. As the facts before us are similar to the facts before the Tribunal in the case of Venkateswara Wines, Nizamabad (2015 (9) TMI 1616 - ITAT HYDERABAD) and the uniform rate of profit cannot be adopted in the case of every assessee in similar business, we allow ground No.2 of the assessee. Remuneration paid to the partners to be allowed to be deducted from the estimated income - Held that:- We find that the same is not allowable as the income of the assessee itself has been estimated on the cost of the goods sold and not on the turnover or receipts of the assessee.
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