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2020 (2) TMI 1673 - AT - Income TaxEstimation of income - Undisclosed sale - assessing income @60% of the profit rate - HELD THAT:- We notice that this assessee is a cloth merchant and proprietor of M/s Geeta Tex Fabrics. Case file suggests that the learned lower authorities have assessed her income derived from cloth trading @0.75% profit rate. That being the case, we are of the opinion that the CIT(A)’s impugned action assessing 60% profit rate is neither based on the assessee’s corresponding books of accounts nor that adopted in preceding and succeeding assessment years. We therefore conclude that a lumpsum profit rate @7.5% of the rates in issue, already double than that accepted @0.75%, would be just and proper keeping in mind the peculiar facts and circumstances involved herein. Necessary computation to follow as per law. It is made clear that our instant estimation shall not be treated as a precedent in other assessment year(s). Assessee’s appeal is partly allowed.
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