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2022 (12) TMI 102 - AT - Income TaxRevision u/s 263 - unaccounted turnover - additions towards additional capital employed/invested for maintaining the minimum additional stock - information received from Directorate General of GST Intelligence - addition on account of additional net profit by applying the net profit rate of 4.42% on the alleged undisclosed sales - HELD THAT:- Firstly, we don’t agree with the contention of the ld CIT DR that the whole of the assessment order has been set-aside to the file of the AO - assessment order has been set-aside for the limited purposes of examining the matter relating to additional capital employed/invested for maintaining the minimum additional stock to carry out unaccounted turnover, thus where the assessee has challenged the matter relating to estimation of net profit on the unaccounted turnover before the Coordinate Bench, the assessee is very much within its rights to rely on the findings of the Coordinate Bench. Also gone through the order of the Coordinate Bench [2022 (9) TMI 922 - ITAT CHANDIGARH] in assessee’s case and the findings contained therein as recorded a finding that very foundation for making the additions on account of unrecorded sales stands demolished and has no sound basis and the additions on account of additional net profit earned on alleged unrecorded sales were directed to be deleted. It is a settled position that for achieving certain turnover, the assessee has to deploy and invest certain funds/capital. Where a finding has already been recorded as in the instant case that there is no basis for determining unrecorded sales and the whole of the additions have been deleted, the question of capital employed for achieving such unrecorded sales/turnover doesn’t arise for consideration. In view of the same, where there is no addition on account of unaccounted sales and the resultant additional net profit, then the question of alleged capital employed to carry out such alleged unaccounted sales and turnover as per the order of the Ld. Pr. CIT doesn’t have any legal basis and the same deserve to be set-aside. In the result, the order of the ld PCIT passed u/s 263 of the Act is hereby set-aside. - Decide against revenue.
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