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2016 (12) TMI 681 - AT - Income TaxAddition on account of GP estimation on unaccounted sales - Held that:- All necessary quantitative details were filed before the assessing authority during the course of assessment proceedings including excise records and no defect has been pointed out except for minor difference in the yield. Ld. Assessing Officer has also not been able to point out any mistake in the excise record which could not be avoided and certainly carry a far better evidentiary value in comparison to the computer generated sheet of the accounting system in which figures of closing stock can be manually putin to increase or decrease the profits. Certainly the excise record and quantitative records are having an edge over the computer generated print out. We are therefore, of the view in that where Revenue has been unable to point out any major fault in the quantitative record maintained by the assessee which were duly produced during the course of assessment proceedings, we agree with the contentions of assessee that the shortage of stock is only to the extent of ₹ 10,30,028/- and not ₹ 60,00,000/- Accordingly addition towards GP estimation on unaccounted sales will work out to ₹ 1,61,920/- being 15.72% of the shortage figure of ₹ 10,30,028/-. Unexplained expenditure u/s 69C for payment of labourand two expenditure directly made by the partners out of their cash withdrawals - Held that:- We observe that ld. Assessing Officer has made a general remark for making addition and has not given any cognizance to the fact that there was a shortage in cash of ₹ 250781/- which could have taken care of the unexplained expenditure as submitted by the assessee. Further we also agree to the contentions of assessee that once estimation of GP has been made on the unaccounted sales it covers unexplained expenditure also to this extent. We are, therefore, of the view that ld. Assessing Officer erred in making addition
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