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2016 (7) TMI 954 - AT - Income TaxEstimation of income - Held that:- As regards the estimation made by the Assessing Officer at the rate of 6% on the turnover, no basis of whatsoever kind has been provided by the Assessing Officer and the same is made on the basis of surmises and conjectures and cannot be upheld. Accordingly, Revenue’s appeal is dismissed. Out of the average gross profit of 16.94%, if the gross profit declared by the assessee at 16.50% is reduced, the difference comes to 0.44% which has been directed by the Ld. CIT(A) to adopt on the total turnover. While estimating the income, the Ld. CIT(A) has committed an error that cost of material amounting to ₹ 24,39,40,964 and the cost of shuttering materials at ₹ 5,05,85,544/-, Kerala VAT at ₹ 1,12,17,821/-, Goa VAT at ₹ 3,95,726/- and other expenses where no profit element has been involved, were not excluded which totals to ₹ 31,07,29,889/-. Therefore, the said amount of ₹ 31,07,29,889/- included in the turnover, has to be essentially excluded while estimating the income and accordingly, the Assessing Officer is directed to apply the gross profit rate of 0.44% after excluding the said turnover of ₹ 31,07,29,889/- at ₹ 59,45,76,475/-. It is ordered accordingly. Thus, assessee gets the part relief and appeal of the assessee is partly allowed.
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