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2017 (8) TMI 448 - AT - Income TaxEstimation of profit in respect of IMFL business - 10% OR 5% - Held that:- The coordinate bench of the Tribunal in the case of Tangudu Jogisetty (2016 (7) TMI 379 - ITAT VISAKHAPATNAM) has considered the profit level in the line of business and decided that 5% of purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to re-compute the profit of the assessee. Thus we direct the A.O. to re-compute the income of the assessee at 5% of purchase price. Accordingly, this ground of appeal raised by the assessee is allowed. Unexplained cash credits - additional evidence to substantiate the claim - Held that:- Assessee filed an additional evidence on 15/02/2017 and submitted that he is in the process of collecting the evidence and ultimately he succeeded in collecting the evidence and therefore, same may be considered and admitted and remitted matter back to the Assessing Officer for fresh consideration. As find that all the confirmation letters filed by the assessee were obtained from the creditors, who belongs to the assessee’s village and the amount is below ₹ 20,000/-. When the assessee has borrowed funds from friends and relatives, who are belonging to the same village, as to why he has taken near about five years to collect the confirmation letters. The assessee has not given any explanation for that. Also find that the additional evidence filed by the assessee in the form of confirmation letters is only an afterthought. It is not a fit case to admit the additional evidence, hence, reject the same. Assessee has not filed any details to substantiate his case - Decided against assessee.
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