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2021 (9) TMI 530 - AT - Income TaxUndisclosed turnover - Estimation of income @ 5% being sales turnover of the assessee - presumption u/s. 292C - according to the ld. DR, the entire turnover has to be considered as unexplained investment u/s. 69B - HELD THAT:- As the entire turnover mentioned in the pocket diaries in its entirety cannot be considered as undisclosed income of the assessee and turnover includes purchase cost, labour cost, other costs and gross profit and he estimated only the net profit of that turnover @ 5% and directed the AO accordingly - even after applying the presumptions u/s. 292C of the Act to the facts of the present case, there was no adequate material to conclude that the transaction recorded in the seized documents are total undisclosed income of assessee which remained unexplained. The other aspect of the matter is that presumptions u/s. 292C are rebuttable presumptions and they do not lead to conclusive evidence. The assessee has right to rebut the presumption. In the present case, since the assessee has not rebutted the presumption, CIT(A) has given a direction to estimate the income on the turnover @ 5% as income of the assessee. In view of the inadequate material to suggest that the entire turnover is income of the assessee, to be reasonable and fair, the CIT(A) estimated income @ 5% of the turnover. We do not find any infirmity in the findings of the CIT(A) on this issue. As the entire transaction recorded in the seized material cannot be considered as income of assessee u/s 69B. Therefore, we are inclined to confirm the order of CIT(Appeals) on estimation of income @ 5% of the turnover. In view of the above discussion, we dismiss the grounds of the revenue.
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