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2022 (2) TMI 374 - AT - Income TaxUndisclosed business profit - Variation in the inventories physically found during the search with that recorded in books of accounts - HELD THAT:- The figure of inventories as per regular books of account taken by both lower authorities is ₹ 19,85,00,000/- which is an approximate figure and the actual figure of the inventories as per the books is ₹ 19,62,74,025/- which is duly supported by the details of quantity rate and value given in the submissions. We find that if this actual figure of inventories as per regular books of account is applied in the computation sheet mentioned in the impugned order as well as in the finding of Ld. AO, the resultant gross profit @ 13.87% will need to be worked out on the figure of ₹ 9,37,46,093/- and the same will be ₹ 1,30,02,583/- which is the same figure that the assessee has disclosed in the return of income. In other words there will remain no difference to make addition for low gross profit as all the necessary reconciliation has been proved to our satisfaction by the ld. counsel for the assessee. We, accordingly set aside the finding of Ld. CIT(A) and held that Ld. AO erred in making the addition for undisclosed cost profit of ₹ 9,43,234/-. Ground No.1 of the assessee’s appeal is allowed. Claim of education cess and secondary higher education cess - HELD THAT:- The Hon'ble High Court of Bombay in the case of Sesa Goa Ltd.[2020 (3) TMI 347 - BOMBAY HIGH COURT] was pleased to hold that the Education Cess is an allowable expenditure as per the provision of the I.T. Act - Thus we allow this ground of the assessee claiming the deduction for payment of Education Cess as business expenses u/s 37(1) - Decided in favour of assessee.
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