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2019 (7) TMI 1042 - HC - Income TaxAddition of unexplained receipts - method of accountancy followed - ITAT deleted the addition - HELD THAT:- The appellant has disclosed additional 50 lac rupees in its return filed. The net profit of 50 lac on unrecorded-receipts for the year worked out at ₹ 2,12,91,706/-; gives a net profit rate of 23.48%. Therefore, the profits declared are held reasonable looking to the profit in the business even after reducing the fixed expense. Without prejudice to the above, even otherwise, if unrecorded receipts as worked out by the AO at ₹ 2,57,41,751/- were considered the net profit rate on undeclared receipts comes to 19.42% which is much above the average of last 5 years and is reasonable considering the decreasing trend. As already held that the actual profits and not the entire suppressed receipts are to be added. The profits declared on suppressed receipts (extrapolated for the whole year) at ₹ 50 lac are held reasonable and therefore, any further addition is uncalled for. - Decided against revenue
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