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2014 (3) TMI 1132 - ITAT JAIPURRejection of books of accounts - profit estimation - unverifiable purchases - Held that:- Considering the aspects that there was substantial growth of 13.88% in the turnover in comparison to last year, it cannot be said that the g.p. rate shown at 12.73% during the year on declared sales of ₹ 14,26,90,358/- against g.p. rate of 13.97% on the turnover of ₹ 2.92 crores shown during the last year was unreasonable to justify the trading addition made by the A.O. at ₹ 7,91,855/- by applying g.p. rate of 13.28% and application of g.p. rate of 13% by the Ld. CIT(A) sustaining the trading addition of ₹ 3,99,533/- in question. A.O. had applied g.p. rate of 13.28% on the declared sales on the basis of weighted average which has been corrected by the CIT(A) with this observation that the correct weighted average rate of g.p. actually comes to 13.01% instead of 13.28%. Thus in over all result of the assessee in comparison to the last year and that the assessee had furnished all the necessary information/details about the transaction and the parties supported with the documents as could have been expected from a prudent purchaser to establish the genuineness of the claimed transaction, we are of the view that the lump sum addition of ₹ 1,00,000/- will meet the ends of justice to plus the possible leakage, if any, as the claimed purchases remained unverified but sales declared has not been doubted.
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