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2020 (12) TMI 721 - AT - Income TaxAdditions on account of unaccounted on-money - unaccounted receipts - it is the case of the assessee that the statement of Managing Partner has been fully honoured and aforesaid on-money receipts in aggregate were bifurcated into two financial years and credited to the Profit and Loss Account of the respective financial years appropriately - HELD THAT:- As taken note of averments made in the statement of Shri Bharat K. Gadhiya recorded u/s 132(4) of the Act and also various evidences found in search. On consideration of these facts, the CIT(A) found the action of the Assessing Officer to be arbitrary and uncalled for. We note that the additions, if accepted, will result in increase in staggering net profit upto 52% which is ostensibly abnormal and out of sync with line of the business. CIT(A) has, in our view, rightly analysed the facts and inter alia observed that major component of expenditure is in the form of interest and remuneration to the partners which have not been doubted by the AO. CIT(A) has rightly concluded the issue in favour of the assessee having regard to the facts and law appreciated - Appeal of the Revenue is dismissed.
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