Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 850 - ITAT GUWAHATIUndisclosed Deposits in bank account - AO treated the net amount as undisclosed business receipt - AO estimated the profit at 8% - HELD THAT:- The estimation of profit is always involved a guess work. It can never be accurate but there must be some material justifying the guess work of the adjudicating authority. We are also facing the same problem because before us also, there is no detail. However, to some extent, the uniform rate of 8% available in Section 44AD applicable on some contractor is not to be applied on every time on every type of business. Therefore, we direct the ld. Assessing Officer to take an estimated income at 4% and credit of income disclosed by the assessee is to be given accordingly. Undisclosed contract receipt - Submission of the assessee is that as far as the different of Rs.5,00,000/- is concerned, it never came to his bank account, therefore, it was not recognized as a gross receipt on which profit is to be worked out. The revenue authority failed to find out any fault in this submission. They simply rejected. It is to be demonstrated from the details that the assessee has received the complete money and failed to offer income of the differential amount. Therefore, this fold of ground of appeal is allowed and the addition is deleted. CIT(Appeals) confirming the addition of commission income - non disclosure of full income in the return - AO has not brought any facts of the records. He has simply observed like this, the assessee has submitted that nothing such type of facts are reflected in TDS statement filed under section 226AS by the prayer. Therefore, there is no basis to make this addition, it is deleted.
|