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2017 (9) TMI 372 - AT - Income TaxRe-determination of the profits from business - net profit determination - CIT(A) compared the results of Gokuldas Exports Ltd. and found as assessee’s business being similar, the net profit determination could be justifiably made at 10% of the sales - Held that:- The methodology adopted by the CIT(A) is far from reasonable because, there is no material brought out by him to show how the Gokuldas Exports Ltd. was comparable to the operations carried out by the assessee. Therefore, under these circumstances, in our considered opinion, the manner of estimation made by the CIT(A) cannot be sustained. Also observed that before the CIT(A) assessee furnished an unaudited P&L Account, which formed the basis for the CIT(A) to apply the profit percentage on the declared sales. In our view, before taking into account such unaudited P&L Account, it was imperative to examine its authenticity and in that respect we do not find any particular finding by the CIT(A). Pertinently, this unaudited P&L Account was not before the Assessing Officer in the course of the assessment proceedings. Thus, we deem it fit and proper to set-aside the order of CIT(A) and restore the assessment for the two captioned assessment years back to the file of Assessing Officer for determination afresh in accordance with law. - Decided in favour of assessee for statistical purposes.
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