Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 761 - AT - Income TaxBogus purchases - additions to the tune of 12.5% - HELD THAT:- Hon’ble Supreme Court in the case of Kanchwala Gems v. JCIT [2006 (12) TMI 83 - SUPREME COURT] has held that in best judgment assessment an honest and fair estimate of income is to be made. We at this stage do not want assessee to be relegated to pains of another round of litigation based on material on record. In our considered view based on facts and circumstances of the case, we find that estimation of profit by CIT(A) to the tune of 12.5% of the alleged bogus purchases as income of the assessee over & above what was declared by the assessee in his return of income, is considered to be a reasonable and fair estimate , which we confirm/affirm. In the result, the appeal of the revenue on this ground stood dismissed. Set-off of carried forward depreciation against the income of the current year - HELD THAT:- AO has observed that assessee has already sought set off of this un-absorbed deprecation against the income of years prior to the impugned assessment year which was not allowed by the AO for those years. However, since the claim of the assessee is now allowed by the tribunal as above, the AO is directed to make necessary verification while allowing set off of un-absorbed deprecation for AY 1998-99, 1999-00 and 2000-01 against income of the impugned assessment to ensure that the same was not allowed for earlier years to avoid duplications. CIT(A) has also given similar directions to the AO for verifications to avoid duplication of the same claim. We donot find any infirmity in the order of learned CIT(A) granting relief to the assessee for the impugned assessment year. The Revenue fails.
|