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2018 (9) TMI 1023 - AT - Income TaxEstimation of income - Net profit assessment @ 8% - Best judgement assessment - deduction of salary paid to partners - Held that:- CIT(A) that in the absence of the major details of expenses which were not produced for verification and in presence of certain lacunae on the part of the assessee as observed above by the Ld. CIT(A) estimation of net profit @ 8% of gross turnover cannot be said to be unjustified. The observation made by the CIT(A) does not call for any interference and thus we do not hesitate to confirm the same. However, the salary of the partners and interest of the partner’s capital account cannot be clubbed in such addition made by the authorities below. We, therefore, find it fit and proper to remit the issue to the file of the AO to deduct the salary paid to the partners in the relevant year and the interest to partners capital accounts as paid from the total addition of ₹ 18,86,442/-. With this direction, we partly allow the appeal filed by the assessee for statistical purposes.
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