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2016 (11) TMI 450 - AT - Income TaxAdoption of profit @10% of the undisclosed contract receipt - Held that:- The impugned undisclosed receipt was on account of payments directly made by the parties of assessee to the truck owners and tax was deducted at source in the name of assessee. There was a reasonable cause on the part of assessee in not being able to enter such direct payments to truck owners in its books of account. Further the impugned gross receipt cannot be treated as income as it is in the nature of freight charges and the profits element in the impugned receipt can only be taxed and not the gross amount. Therefore, ld. CIT(A) has rightly sustained the addition to the extent of 10% of the gross receipt. - Decided against revenue Unexplained on account of unexplained cash deposit - Held that:- As the impugned bank account in which cash has been deposited has been shown in the regular books of account and all the debits and credits in this bank account have been reflected in the related account in the books and the closing bank balance of SB account is also shown in the audited balance sheet as observed by ld. CIT(A). Certainly there is no element of unexplained cash credit so as to invoke provisions of section 68 of the Act as the impugned amount of ₹ 39,21,381/- is duly explained either as business receipt or out of regular cash withdrawal. We therefore, find no reason to interfere with the order of ld. CIT(A) and uphold the same. - Decided against revenue
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