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2017 (12) TMI 123 - AT - Income TaxAddition on basis of seized document - addition on adjustment to reduce the excess profit of ₹ 20 crores - Held that:- Though the document in question was not recovered from the possession of the assessee-company, any how, it would not give rise to the addition in question. The A.O. heavily relied upon the seized document copy of which is filed at page-358 of the paper book as well as reproduced in the assessment order. According to it, the estimated profit of year ending in appeal was estimated at ₹ 160 crores. The assessee-company, as per the seized document declared ₹ 140 crores as profit plan as per advance tax. Therefore, it was considered a reduction in the profit of ₹ 20 crores. It is not in dispute that ultimately the assessee- company declared taxable income of ₹ 160,14,24,547. The A.O. in the computation of income has taken the same figure. Therefore, even if the seized document is considered adverse in nature against the assessee-company, assessee-company has already declared more taxable income in the return so filed after the search. Therefore, there is no case of reduction of the profit in the facts and circumstances of the case. Further, A.O. has not brought any evidence on record that as against the declared income at ₹ 167 crores, there is any manipulation or reduction of the profit in the books of account of the assessee-company. Therefore, the A.O. has miserably failed to support his findings for making addition of ₹ 20 crores. - Decided in favour of assessee.
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