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2018 (7) TMI 1756 - AT - Income TaxSuppressed turnover - Held that:- Even though a paper book has been filed, with reference to the admitted turnovers and the rate of profit to be estimated relying on various case law, no material has been placed contesting the turnover determined by the AO as total turnover and the suppressed turnover. Since no evidence has been placed by assessee to differ from the findings of the Ld.CIT(A), we are in agreement with the order of the CIT(A) in para 6.1 with reference to determination of suppressed turnover. Consequently, the impugned suppressed turnover ₹ 6.93 Crores stands confirmed and grounds of assessee on this issue are rejected. Estimation of profit - Held that:- In this case, the quantification itself was done on the third party registers where only the indicative sale prices were recorded. Since more than 70% of the turnover was recorded and the profit at 4% was accepted by AO, we are of the opinion that estimation at 12.5% is reasonable on the facts of the case. Ld. Jurisdictional High Court in the case of ACIT Vs. Ravi Foods Pvt. Ltd., has confirmed net profit rate of 3.91%. That case however, pertain to a food business case, but not real estate. Generally in real estate/contract cases, profit is estimated at 12.5%. As assessee has mostly sold real estate plots, we are of the opinion that estimation of income at 12.5% on the suppressed turnover will meet the ends of justice. Accordingly, modifying the order of CIT(A), we direct the AO to determine the profit at 12.5% of the determined suppressed turnover.
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