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2023 (5) TMI 789 - AT - Income TaxEstimation of profit on bogus sales - AO has applied GP rate of 6.7% to entire sales turnover of the assessee - CIT-A deleted addition - HELD THAT:- AO estimation is unacceptable, as, except two parties, the Assessing Officer has not found anything adverse in respect of sales made to others. Therefore, he should not have applied the GP rate of 6.75% to entire sales turnover. To that extent, Commissioner (Appeals) was justified in reversing the decision of the AO. Insofar as the applicability of the GP rate of 6.75% to sales effected to M/s. Dee Kay Trade Centre and M/s. J.S. Enterprises are concerned, there is no difference in the products sold by the assessee to all the parties. Therefore, if the GP shown by the assessee in respect of sales effected to other parties is acceptable, there is no reason why the same GP rate will not apply to the sales effected to M/s. Dee Kay Trade Centre and M/s. J.S. Enterprises. This is so because, when there is similarity in the products sold, there cannot be much difference in the GP rate. We hold that the additions sustained by Commissioner (Appeals) in different assessment years under dispute deserves to be deleted. Appeal of assessee allowed.
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