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2023 (9) TMI 1110 - AT - Income TaxAddition as extra profit being 1% of the cash sales - assessee into the business of trading of Coal and Commission Agent of Uttar Pradesh Small Industries Corporation Ltd. (UPSIC) and Uttar Pradesh State Food and Essential Commodities Corporation Ltd. (UPSFECC). The assessee purchases coal from the said Government Agencies and sell them to various brick Kiln owners - HELD THAT:- In the present case, the A.O. had not doubted the genuineness of the documents produced by the Assessee to substantiate the source of cash deposit in the bank account and made the addition as extra profit being 1% of the cash sales without rejecting the books of accounts of the Assessee. The pre condition for estimating business income where the assessee maintaining books of account is that, the books of the Assessee should be found to be unreliable or otherwise not realistic and not capable of demonstrating the income of the Assessee. Applying the ratio laid down in the case of Salochana Bhatia [2011 (5) TMI 838 - PUNJAB AND HARYANA HIGH COURT] and also Sanjay Aggarwal [2021 (9) TMI 1515 - ITAT RAIPUR] we are of the opinion that the addition made by the A.O. without rejecting the books of accounts of the Assessee is erroneous. Accordingly, we allow the Grounds of appeal of the Assessee.
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