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2015 (4) TMI 371 - AT - Income TaxValidity of assessment u/s 153A - Held that:- We find merit in the contentions of ld DR that considering the statement of assessee dtd. 21-10-2008 it has been admitted that assessee was regularly engaged in unrecorded purchases and sales; no exception of any year has been claimed. Consequently the statement and the seized record for other year unambiguously become incriminating material for valid issue of notices u/s 153A. It is admitted by the appellant in his statement dated 21/10/2008 that it has been indulging in unrecorded purchase and sales; no year of exception is stated. This leads to a clear indication the assessee as a regular policy indulged in such clandestine maintenance of books and avoided taxes. Therefore, the notices issued U/s 153A for all the years by the Assessing Officer are valid and CIT(A) has rightly upheld them. Further reassessment proceedings were abated in A.Y. 2003-04, 2004-05 and 2005-06 as the assessee's case were only processed U/s 143(1) of the Act. Therefore, we confirm the order of the learned CIT(A) on issuance of notice U/s 153A of the Act in all the years.- Decided against assessee. G.P. rate as well as total sales turnover estimated challenged - Held that:- The learned Assessing Officer applied comparable case of M/s Rajan Fireworks and Emporium Prop. M/s Sunder Dass Hasani HUF, who is wholesalers/retailers of fireworks, who has shown G.P. rate ranging G.P. from 17% to 18%. The learned AR argued that the case of M/s Rajan Fireworks and Emporium Prop. M/s Sunder Dass Hasani HUF is not a comparable case hence distinguished on various facts and figures and nature of trading activity in quantum and experience. The assessee has shown G.P. in 2009-10 @ 14.99% on recorded sales of ₹ 21,57,817/-, therefore, we apply G.P. rate in A.Y. 2003-04 @ 13%, in A.Y. 2004-05 @ 14%, in A.Y. 2005-06 @ 13% and in A.Y. 2006-07 @ 13.5% in the interest of justice. The Assessing Officer is directed to recalculate the income of the assessee on the basis of G.P. rate decided by this Court in year wise on estimated total turnover by the learned CIT(A).- Decided in favour of assessee.
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