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2017 (6) TMI 915 - AT - Income TaxEstimation of profit in respect of IMFL business carried by the assessee - Held that:- In the case of Tangudu Jogisetty (2016 (7) TMI 379 - ITAT VISAKHAPATNAM) has considered the profit level in the line of business and decided that 5% of purchase price is reasonable profit margin in the line of IMFL business and directed the A.O. to re-compute the profit of the assessee. Thus we direct the A.O. to re-compute the income of the assessee at 5% of purchase price. Accordingly, this ground of appeal raised by the assessee is allowed. Unexplained investment - Held that:- Assessee has filed the confirmation letters from four creditors amount to ₹ 7,99,000/-. The assessee has not given proper details during the course of assessment proceedings. However, before the ld. CIT(A), he filed details and confirmation letters, hence, ld. CIT(A) has called remand report. In the remand report, the Assessing Officer has doubted the transaction on the ground that assessee paid the impugned amounts by way of DDs, but those DDs were taken by the third parties and not by the assessee. As find that AO without calling the assessee and without making any enquiry, simply doubted the transaction, in my opinion, the action of the Assessing Officer is not justified. CIT(A) is also not justified in confirming the order of the Assessing Officer. It is a fit case to remit the matter back to the file of the Assessing Officer to decide the issue in afresh in respect of unexplained investment
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