Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 448 - AT - Income TaxEstimation of income on the basis of assessee's past income - case was selected for scrutiny and notices u/s. 143(2) and 142(1) - estimating the profit @ 4% on the unrecorded sales without any basis when the assessee had relied on Section 44AD - HELD THAT:- Admittedly, in these cases, the assessee himself offered the income at 10% in his return of income. See MR. M.A. SIDDIQUE, MR. MOHAMMED SAFWAN VERSUS DCIT, CENTRAL CIRCLE – 1, MANGALURU AND VICE-VERSA. [2020 (8) TMI 835 - ITAT BANGALORE] In our opinion, there was no admission by that assessee like in the present case. Being so, it is appropriate to estimate the income of the assessee on the basis of assessee's past income. The assessee furnished before us the past history of income - Accordingly, we direct the AO to consider the average net profit declared by the assessee in the last 3 immediate Assessment Years i.e., 2013-14, 2014-15, 2015-16 and apply the same rate and recompute the income of the assessee. Separate addition with regard to undisclosed investment in unaccounted purchases against receivables - Since there was no corroborative evidence to substantiate the co-relation of transactions, in our opinion, once the income of the assessee is estimated, there cannot be any further additions. This view of ours is fortified by the judgment in the case of Indwell Construction Vs. CIT [1998 (3) TMI 121 - ANDHRA PRADESH HIGH COURT]. Accordingly, we are inclined to dismiss the other grounds of appeal raised by the Revenue.
|