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2016 (9) TMI 594 - AT - Income TaxAddition on account of sale of gold/silver jewellery - Held that:- Assessee, in the instant case, failed to produce documents regarding the purchase / possession of silver and gold ornaments. In the absence of supporting evidence, it is inferred that assessee was having undisclosed income which was accounted in the form of sale purchase of gold and silver. We find that there is no substance in the transactions as claimed by assessee. Accordingly, we find no reason to interfere in the order of Authorities Below. We uphold accordingly and ground raised by assessee is dismissed. Addition on account of unexplained income - Held that:- We find that assessee failed to furnish any documents in support of gift received from the above stated parties. In the absence any documentary evidence, we find no reason to interfere in the order of Ld. CIT(A). Estimating a profit @ 7% on the turnover - Held that:- Nature of business of assessee has not been doubted by the lower authorities. We understand that if assessee is carrying on his business, there will be several indirect business expenses besides the direct cost. The lower authorities have not doubted the amount of loan which assessee has borrowed for the purpose of his smooth running of business. If we analysis the balance-sheet of assessee we find that loan amount has been utilized exclusive for the business. However, at the same time, we cannot ignore the fact that assessee has failed to produce his books of account which was very important aspect for making the scrutiny assessment. We find that assessee has claimed total indirect expense for ₹2,77,086/- which is inclusive of interest element of ₹1,58,833/-. So it means only indirect expense of ₹1,18,253/- has been claimed by assessee. In view of the mater and after considering the facts in totality of the case and in the interest of justice and fair play, we are inclined to limit the net profit @ 4% of assessee’s turnover.
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