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2019 (10) TMI 1126 - AT - Income TaxReopening of assessment u/s. 147 r.w.s. 148 - reopening based on a survey report prepared after survey u/s.133A - turnover declared was found more than shown by the assessee in its regular books of account - HELD THAT:- We note that the assessee’s income termed as incentive and sales commission is only on attainment of sales target from the same line of business and, therefore, when the assessee receives incentive/discount a part of it is also passed on to the consumers to attract more consumers. When the books of account of the assessee has been rejected, there was no necessity for separate addition of the commission/incentive/discount which the assessee had undisputedly received in the same business and it is not the case of the revenue that the assessee was engaged in any other business from which assessee had received separate incentive/commission for doing certain other services the said income.Once the books of account of the assessee were rejected by the AO, then he should have only estimated the profits of the assessee. Once the books of account of the assessee were rejected by the AO, then he should have only estimated the profits of the assessee. We note that the turnover found in the impugned typed Balance Sheet and P & L Account during survey was to the tune of ₹ 3,00,50,000/- and the sales incentive and sales commission was to the tune of ₹ 31 lacs and ₹ 15 lacs, so the total amounts comes to ₹ 3,00,50,000 + ₹ 31,00,000 + ₹ 15,00,000 = ₹ 3,46,50,000/-. Though the assessee had shown a GP of 4.35%, in the interest of both the parties, we enhance the same to 6% and thus the GP comes to ₹ 20,79,000/- and thus the assessee receives a relief of ₹ 49,31,830/-. Appeal of the assessee is partly allowed.
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