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2020 (5) TMI 56 - HC - Income TaxGP rate estimation - rejection of books of accounts - Assessee argued that while making addition on account of G.P. rate, the amount surrendered should have been considered for calculating the gross profit - HELD THAT:- The gross profit as per the previous year was considered by the AO. The same cannot be said to be excessive or arbitrary. The Tribunal rightly came to the conclusion that surrendered amount of ₹ 10,50,000/- was on account of un-explained investment in the stock. It represented unaccounted transaction and does not represent the profit of unaccounted transaction of purchase and sale. There was no convincing reason put forth by the assessee justifying the low G.P. Rate. There is another aspect of the matter. The Assessing Officer while finalising the assessment considered the profit amounting to ₹ 3,06,705/- as covered under the surrrendered amount of ₹ 10,50,000/- and thereafter made the addition. The conclusion arrived at by the Tribunal is plausible and calls for no interference.
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