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2016 (11) TMI 1742 - AT - Income TaxDetermination of quantum of suppressed production / sale of TMT bars - estimating gross profit @ 4% on suppressed sale - HELD THAT:- As in the absence of any evidence collected by the AO of alleged removal of goods without payment of Excise duty, merely on the basis of estimation of alleged suppressed production in earlier years, there is no merit in making any addition in the hands of assessee. We delete addition made in the hands of assessee by the CIT(A) to the extent of 4% of the said alleged production. Accordingly, ground of appeal raised by the assessee against confirming the addition made on account of suppression of production by applying GP rate of 4% on the alleged production of sale are allowed. Further, the ground of appeal raised by the Revenue against the order of CIT(A) in quantifying the suppressed production @ 4% and deleting the addition of working capital is dismissed. Whether any further expenses on account of manufacturing and administration are to be allowed against unaccounted production worked out? - There is no merit in the ground of appeal raised by the Revenue in this regard as no addition on estimate basis is upheld in the hands of assessee. The ground of appeal No.2 raised by the Revenue is thus, rejected.
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