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2015 (11) TMI 1811 - AT - Income TaxEstimation of profit - Bogus purchases - Addition on account of difference in purchase as per P&L A/e. & purchase register - HELD THAT:- CIT(A) has merely made estimation of GP ratio of 20% of the turnover without disclosing the basis of arriving at the figure of 20% and how the income based on the said GP ratio of 20% in case of the assessee is honest and fair as per mandate of KACHWALA GEMS VERSUS JOINT COMMISSIONER OF INCOME-TAX [2006 (12) TMI 83 - SUPREME COURT]. We set aside the order of the CIT(A) to the extent of estimation of income of the assesseee based on GP ratio @20% of turnover done by the CIT(A) in his orders dated 29.02.2012 and direct the CIT(A) to pass an order estimating income based on GP ratio based on financial data’s pertaining to the other entities belonging to the iron and steel industry so that honest and fair estimate of income of the assessee can be brought to tax. The assessee is also directed to appear before the CIT(A) and produce all the relevant material required by the CIT(A) for estimation of GP ratio based on financial data’s pertaining to the other entities belonging to the iron and steel industry so that honest and fair estimate of income of the assessee can be brought to tax and such data as may be produced by the assessee shall be duly considered by the CIT(A) before making honest and fair estimation of GP ratio to determine correct income of the assessee chargeable to tax - Appeal filed by the Revenue is partly allowed for statistical purpose.
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