Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 249 - AT - Income TaxGross profit determination - CIT(A) reducing the gross profit determined by the AO at the rate of 4% to 1.5% of the gross turnover - Held that:- The assessee has offered gross profit on such undisclosed business @ 1% whereas the AO has taken gross profit @ of 4%. However, on perusal of assessment order, we find that the estimated rate @ of 4% towards the gross profit was adopted by the AO without adducing any reason. On the contrary, the ld. CIT(A) has reduced the rate of gross profit from of 4% to 1.5% by having reliance in the assessment order in the case of MDPL, engaged in the similar business, where the gross profit was shown @ less than 1.5% and the same was accepted by the Revenue. At the outset, we find that the AO has adopted the rate of gross profit without any basis. On the contrary, the ld CIT(A) has adopted the scientific approach for determining the gross profit on the undisclosed income. As such, we find no infirmity in the order of ld CIT(A) and we uphold the same. Hence, this ground of appeal of the Revenue is dismissed. Addition on undisclosed investment made in the land - Held that:- We note that CIT-A has confirmed the undisclosed sales of ₹ 1,86,57,135/-, ₹ 7,67,35,863/- and ₹ 8,14,26,433/- in the assessment years 2007-08, 2008-09, and 2009-10 which was worked out by the AO in his assessment orders passed under section 153A of the Act respectively. We also observed that the ld. CIT-A have also upheld the order of the AO in assessing the gross profit on such undisclosed sales as well as addition on account of undisclosed investment. Thus the ld. CIT-A was of the opinion that the cash payments as recorded in the impounded document SPB/19 has to be treated as made out of the receipts recorded in SPB/19 which have already been considered by the AO. In other words, according to the ld. CIT-A the cash payments as recorded in the impounded document SPB/19 has to be treated as explained in view of the receipts recorded in SPB/19 which have already been considered by the AO. The aforesaid factual finding was not controverted by the ld. DR. Therefore we fully agree with the reasons given by the ld. CIT-A - Decided against revenue
|