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2016 (9) TMI 1068 - AT - Income TaxNet profit computation - rejection of books of accounts - the work in progress included closing stock, which was shown on estimated basis, details regarding use of material at various sites were missing and cash vouchers for miscellaneous expenses were self made, which could not justify the connection of the same for the business purposes - Held that:- The business income of the assessee from the contract work of erection and fabrication has to be calculated by first applying 8% of the gross contract receipts and from this amount, the assessee should be allowed deduction of depreciation, remuneration to the partners and interest. The total income of the assessee to be calculated by adding interest to the figure of business income. Accordingly, the total income by way of this calculation will figure out at ₹ 2,26,83,539.67. We observe that the assessee has disclosed a net profit including bank interest at ₹ 2,49,82,620.84, which is more than the income calculated above at ₹ 2,26,83,539.67. We are, therefore, of the view that the net profit shown by the assessee at ₹ 2,49,82,620.84 to be accepted as total income of the assessee for assessment year 2010-11. Accordingly, the addition sustained by the ld CIT(A) is deleted and appeal of the assessee is allowed.
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