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2018 (8) TMI 1648 - HC - Income TaxGross profit estimation - estimation of profit at 7.17% - assessment was made based on the statement given by the assessee that the amount did not represent the sale of jewelery to the said Mr.Perumal, but was a commission earned for arranging for sale of jewelery from third parties - substantial question of law - Held that:- As perused the reasons assigned by the Assessing Officer in the assessment order dated 29.1.1999 and do agree with the conclusion arrived at by the Assessing Officer that it would be highly improper and imprudent on the part of the assessee firm, who themselves are manufacturers and sellers of gold jewelry to engage in arranging for sale of gold jewelery manufactured by third parties for a commission of about 3%. Thus, going by the statement given by the assessee, the Assessing Officer estimated the profit at 7.17% as was declared by the assessee in respect of sales effected by them. The CIT (A) does not interfere with the finding recorded by the Assessing Officer on this aspect, but only reduced the percentage of gross profit. In fact, the reason assigned by the CIT (A) stating that there was no extra rent, salary, traveling, interest payment for the unaccounted sales, was not borne out by any material and appears to be the personal view of the CIT (A), which could not have been the basis for reversing the decision of the Assessing Officer. Thus, in our considered view, the Tribunal rightly restored the order passed by the Assessing Officer - decided against assessee
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