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2017 (2) TMI 1366 - HC - Income TaxGP estimation - Tribunal reducing GP rate to 6% as determined by Settlement Commission at 8% - Held that:- Tribunal while dealing with this issue has extensively examined the contention raised by the parties and thereafter recorded findings which is essentially a finding of fact accepted the gross profit rate at 6 per cent. Shri Gaurav Mahajan has not been able to point out any specific evidence or ground raised in the appeal which may suggest that the gross profit rated adopted by the Tribunal is either perverse or based on no evidence. As such, the findings recorded by the Tribunal is in accordance with law and does not require any interference. Allowing telescoping of income - whether undisclosed income of the assessee shown in the form of income from "forfeiture of advances from customers and cessation of trading liability" was not from trading activity - Held that:- Assessing Officer himself having admitted in the questionnaire dated 22/12/2006 reproduced at internal page 3 of the assessment order that the aforesaid receipts are earned by way of business activity, the same thus are found to have a nexus with the business income estimated by the application of gross profit rate. The telescoping thereof accordingly is directed to be allowed. It again be a matter of fact as to whether the receipts are earned by way of business activity and there being no evidence to suggest otherwise. The findings recorded by the Tribunal does not warrant any interference. - revenue appeal dismissed.
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