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2015 (9) TMI 1680 - AT - Income TaxRejection of books of accounts - addition on the basis of net profit of 3% of the gross receipts - survey proceeding u/s. 133A - HELD THAT:- The term net profit as commonly understood means the profit which has been arrived at by netting off income over the expenditure meaning thereby that whatever expenses which were due and were deductible have been deducted from the income of the Assessee before deriving the final figure of profit. We are of the view that in a situation when once addition has been made on the basis of estimation of net profit, further addition is not called for and for this conclusion we derive support by the decision of CIT vs. Aggarwal Engg. Co. [2006 (7) TMI 188 - PUNJAB AND HARYANA HIGH COURT] wherein the Hon’ble High Court after considering the decision of Allahabad High Court in the case of CIT vs. Banswarilal Banshidhar [1997 (5) TMI 37 - ALLAHABAD HIGH COURT] held that no further addition was called for in respect of purchases and introduction of cash. Before us, Revenue has not placed on contrary binding decision in its support nor has controverted the submissions made by ld. A.R. In view of the aforesaid facts, we are of the view that apart from addition made by A.O by making estimation of net profits, no further addition on account of income declared during the course of survey was called for. Thus this ground of Assessee is allowed.
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