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2018 (5) TMI 798 - AT - Income TaxUnaccounted stock - Gross turnover computation - rejection of books results - N.P. determination - Held that:- As in the case of gold bar weighing 1 kg, which was not found during the survey operation, which has been also made a basis for estimating the grows turnover. There is no clear cut finding that it was not a part of the valuation made by the valuer at the time of survey. The other issue considered for rejection of books of account and estimating the gross turnover and gross profit is sale of gold bar of 507.610 gms. The payment claimed to have been made by cheque but the sale was not entered into the books of account. Considering all we are of the view that the assessee has already disclosed substantial unaccounted stock in its return of income which takes care of the various discrepancies noted in the books of account. Considering the totality of facts and circumstances, we are of the view that at least the addition to the tune of ₹ 10.00 lacs need to be sustained and gross turnover is estimated at ₹ 10,42,62,598/- This addition is sustained as addition to net profit and after considering the fact that all expenses related to such income have been debited in P&L account and allowed. Accordingly, the ground of assessee’s appeal is partly allowed and ground of revenue’s appeal is dismissed. Addition on account of value of excess stock - Held that:- CIT(A) has granted relief by passing a speaking order. The stock was valued by registered valuer. AO has not accepted the same without any basis. The assessee has separately shown labour income(Gadhai/Majduri) from both the premises. The difference of gadhai/majduri have been debited in P&L account. Thus, no separate addition is required to be made for such income. Similarly the A.O. has invoked the concept of ‘hallmark jewellery’ without any basis. There is no contrary material on record against the order of the ld. CIT(A), therefore, the same is hereby upheld.
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