Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1882 - ITAT CHENNAIAddition u/s. 69A - difference in TDS as per Form No.26AS with the income admitted in the profit and loss account - addition by estimating the income at 3.5% of the purchase turnover - assessee claimed refund being tax collected at source on old gold purchased through jewellery auction - as per the assessee, Section 69A could not have been used for fixing a higher income when estimated rate of return was adopted - argument of the assessee was that he had participated in the auctions and had bidded for various parties like gold commission agents, goldsmiths, traders etc.and was only an agent participating in the auction - HELD THAT:- Though the assessee states that he was participating in old gold auction done by M/s. Manappuram Finance Ltd, on behalf of various parties, he could not produce any confirmation from any such parties. Form No.26AS was in the name of the assessee and this admittedly reflected purchases of gold worth @23,32,17,428/-. Assessee had also claimed refund for the tax of @17,45,898/- collected at source. Assessee having failed to produce any evidence in support of its contention that he was acting on behalf of others, when participating in the bid, the only reasonable presumption that can be drawn is that assessee himself was doing business. In such a situation, assessee having failed to produce any books of accounts, in our opinion,AO was left with no choice but to make an estimate of income, based on value of purchases made by the assessee. Estimation of 3.5% was in our opinion reasonable. No doubt Assessing Officer has cited Section 69A of the Act while making the addition. However this by itself does not make the addition by estimating the income at 3.5% of the purchase turnover bad in law. Even dehorse the said Section, the addition was very much fair and in accordance with law. We do not find any reason to interfere with the order of the ld. Commissioner of Income Tax (Appeals). - Decided against assessee.
|