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2015 (11) TMI 803 - JHARKHAND HIGH COURTUnexplained investment - addition u/s 69 - CIT(A) deleted the addition - Held that:- he batteries were never purchased by the respondentassessee on one time payment, but, it was purchased on credit basis and hence, the amount which has been added in the income of the respondent-assessee which is ₹ 12,73,429/- as unexplained investment, could not have been added by the Assessing officer. So far as, rate of net profit is concerned, Gross profit rate fixed by Assessing Officer @ 15 % which has been reduced by the Commissioner (Appeal) as a net profit @ 6 %. This is also correct because the respondent has sold the batteries on a wholesale basis. The percent of the profit is much lessor because the prices of the batteries were also fixed. This aspect of the matter has been properly appreciated by the Commissioner (Appeal) as well as by the Income Tax Appellate Tribunal. The order passed by the Income Tax Appellate Tribunal that the goods were purchased on credit basis looking to the statement of accounts, average margin of profit is 3.5 to 4.5 and hence, 6 % net profit fixed for the year 1996-97 and for the Assessment Year 1997-98 is also absolutely reasonable. - Decided against revenue.
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