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2016 (8) TMI 598 - ITAT HYDERABADNet income determination - assessee has not maintained proper vouchers but spent it in cash. - Held that:- As only in AY 2008-09, he had earned additional revenue compared to other years and as well as the net profit declared by the assessee and the same was accepted by the department in the preceding and following years are between 15% to 17%. Moreover, the assessee had to spend certain expenditure to earn this income. The Assessing Officer cannot wear shoes of the assessee and determine, how much he has to spend. The Assessee had earned the income and we are not aware of the difficulties in earning the income in this line of business. The prospective buyers need to be convinced and taken to the respective sites to convince them. Assessing Officer has not brought anything on record to controvert that these expenses have not met by the buyers or sellers. In absence of such evidence, we have to go with assessee’s claim. The assessee has not maintained proper vouchers but spent it in cash. The Assessing Officer has rejected the submissions of the assessee and disallowed 50% of advertisement and 50% on other expenditures. In our considered view, Assessing Officer should have estimated the income. The assessee was admitting the net income in the earlier year at 16.13% against the gross receipts of ₹ 16.88 lakhs and in subsequent year, it has admitted 14.80% on gross revenue of ₹ 17.71 lakhs. In the interest of justice, we direct the Assessing Officer to determine the net income of the assessee at 20% of the gross receipts. - Decided partly in favour of assessee
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