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2018 (5) TMI 1968 - AT - Income TaxBogus purchases - estimation of profit - HELD THAT:- No cogent and convincing reason to reduce the profit ratio on the sale and purchase @ 1%. The AO has rejected the books of account on seeing the facts and circumstances of the case and assessed the income of the assessee @ 3% on sale and purchase. CIT(A) reduced the the same @ 1.5% of profit on sale and purchase. No distinguishable material has been produced before us to which it can be assumed that the same is liable to be reduced to the extent of 1% profit on sale and purchase. The assessment has been effected on the basis of the estimation basis by rejecting the books of account. The order of subsequent years passed by AO nowhere seems to binding upon us. Each year is the different year and facts of each year is liable to be considered on seeing the facts and circumstances of the case separately. We found no justifiable ground to interfere with the order passed by the CIT(A) in question. Therefore, these issues are decided in favour of the revenue against the assessee. Addition on unexplained share transaction - HELD THAT:- Profit on sale and purchase of share was adopted @ 3% in view of the statement made by the Shri M.B. Joshi director of the appellant company. However, at the time of hearing before the CIT(A), the assessee contended that the income @ 3% is on the higher side. No comparable prices were produced on record. The CIT(A) assessed the income on the basis of other transaction @ 1.5%, therefore, he found reasonable to assess the profit ratio on account of sale and purchase oh shares @ 1.5%. No distinguishable material is on record. The assessment was based on the estimation basis. We nowhere found any material to interfere the finding of the CIT(A) on record. Therefore, we confirmed the finding of the CIT(A) on this issue and decide these issues in favour of the revenue against the assessee.
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