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2022 (11) TMI 671 - AT - Income TaxAddition made on various counts including estimation of interest income, estimation of C & F commission @ 50% and then estimation of profit on the sales made during the year under the business carried out - HELD THAT:- Looking to the consistency of the business, C & F charges and commission income being received from limited company and the receipts are duly accounted for in Form no. 26AS and they are also getting reflected in the bank statement and there being no other business carried out under the name of M/s. Chakraborty Enterprise which remained undisclosed and simultaneously also considering the fact that both the lower authorities could not examine the correctness of the assessee’s income for the year due to lack of evidences and necessary details, we, in order to put an end to the controversy and in the interest of justice and being fair to both the parties, hold to apply net profit rate of 14% on the total turnover of M/s. Chakraborty Enterprise and against this amount since the assessee has already offered the net profit the remaining amount is the addition confirmed in the hands of the assessee. Thus ground partly allowed. Addition being made for excess wastage of bricks shown by the assessee - HELD THAT:- We find that the assessee gave complete production details of the manufacturing of bricks before ld. AO and against the total consumption of 1,29,845 Cubic Feet of soil purchased from West Bengal Government, the assessee manufactured a saleable quantity of 6,18,000 pieces of bricks. AO has only referred to the excess wastage as suppressed sales. However, looking to the consistency of the business carried out by the assessee in the past and the financial statements being audited and accepted by the Revenue authorities, we, in order to bring the end to the controversy and being fair to both the parties estimate a net profit of 8% on the gross turnover of M/s. Maa Bricks Field shown and compute the profit and after deducting the profit offered by the assessee in the profit & loss account the remaining amount is the income confirmed in the hands of the assessee. Assessee gets relief of Rs. 7,99,477/-. Thus, ground of the assessee’s appeal is partly allowed.
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