Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 2270 - AT - Income TaxEstimation of profit in IMFL business - case of the assessee was selected for scrutiny and assessment was completed u/s 143(3) of the Act by estimating net profit at 20% of the stock put to sale - HELD THAT:- In this respect, the coordinate bench of the Tribunal in the case of Tangudu Jogisetty [2016 (6) TMI 1449 - ITAT VISAKHAPATNAM] has considered the profit level in the line of business and decided that 5% of purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to re-compute the profit of the assessee. Thus we direct the A.O. to re-compute the income of the assessee at 5% of purchase price. Accordingly, this ground of appeal raised by the assessee is allowed. Addition in respect of unsecured loans - HELD THAT:- Credit in the name of Majji Govinda Rao there is a discrepancy in the date of demand draft taken and the amount and the purchaser of the DD. When this was pointed out by the ld. CIT(A), the ld. counsel for the assessee simply submitted that the transaction is genuine, therefore, the Assessing Officer as well as ld. CIT(A) doubted the entire transaction. The assessee failed to clarify the discrepancies pointed out by the Assessing Officer and failed to produce creditor before him, even failed to prove the creditworthiness. Under these facts and circumstances of the case, we are of the opinion that the onus casted upon the assessee has not been discharged. Therefore, the authorities below have rightly made the addition. Thus, this ground of appeal raised by the assessee is dismissed. Unsecured loan in respect of M. Srinivasa Rao on appeal before us except stating what was stated before the ld. CIT(A), no material was brought to our notice that the transaction is genuine. By considering the facts and circumstances of the case, we are of the opinion that the assessee failed to discharge the burden casted upon him to prove the genuineness of the transaction and also creditworthiness of the creditor. Therefore, the authorities below rightly considered the issue and addition is made. We find no infirmity in the order of the ld.CIT(A). Thus, this ground of appeal raised by the assessee is dismissed. Cash credit in the capital account and the assessee offered the same for taxation - Before us, ld. counsel for the assessee has submitted that the amount of Rs. 3.00 lakhs includes profit earned by the assessee, therefore, no separate addition can be made, it amounts to double addition. The AR of the assessee is not able to substantiate the above arguments with any supportive evidence. That apart, the Assessing Officer has not considered this amount while estimating the business income. Therefore, we find that the authorities below have correctly made the addition. Thus, this ground of appeal raised by the assessee is dismissed.
|