Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 533 - AT - Income TaxAddition on account of difference of stock found from the survey conducted u/s 133A - assessee failed to explain the quantity 2kg 0.679gm out of books sales of silver items - addition is based on the discrepancy of the stock found during the survey of 8 kg 0.495 gm. in compression to the stock recorded in the daybook - HELD THAT:- Addition on account of out books sales can be made to the extent of the profit element in the sails and not the entire sale proceeds. In the case in hand the assessee has explained that the gross-profit on the sales during the year is 35% and the average sale price of the assessee during the year was ₹ 35 per gm. of Silver items. Addition on account of out of books sale can be made only by taking the gross-profit as declared by the assessee the accounted sales, as well as the average sale-price of the Silver items as recorded in the books of accounts - AO has made the entire sale proceeds as addition to the income of the assessee which is not justified - sale price adopted by the AO is also not based on the actual prevailing price which ought to have been taken as an average sale price of the recorded sales of the assessee - Assessing Officer is directed to restrict the addition on account of out of books sales only to the extent of profit element i.e. Gross Profit that to by considering the average sale price as assertable from the sales recorded by the assessee - Appeal of the assessee is partly allowed.
|