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2015 (4) TMI 1304 - AT - Income TaxPenalty u/s 271(1)(c) - addition made on account of estimation of GP rate - Rejection of books of accounts - Amount treated as income in respect of which particulars have been concealed - HELD THAT:- As seen that out of total turnover of 31.22 crores, the export sales is at 31.20 crores. Thus, the major sales is by way of export only. In the quantum proceedings, the assessee has filed the entire quantitative details of purchases, in which no discrepancy has been found and entire purchases stood verified. Also evident from the fact that the assessee has claimed rebate under the Central Excise, therefore, the said purchases have been verified by the excise department also. There is no discrepancy either in the quantity or in the value of sales made by the assessee - Addition has been made on the ground that there is steep fall in the gross profit rate as compared to the earlier years. The assessee’s case was that, same was due to decrease in sales realization due to devaluation of foreign exchange along with increased in cost of production. The assessee’s explanation regarding fall in foreign exchange has been not been accepted completely on the ground that the average fall of US $ was not much. This cannot be reason for rejecting the assessee’s books and estimating the gross profit unless no discrepancy has been found either in the quantity in value of purchase and sales. Thus, mere estimation of gross profit at 10% which has been further reduced to 7%, cannot be the basis for levy of penalty for furnishing of inaccurate particulars - Decided against revenue.
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