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2020 (7) TMI 208 - AT - Income TaxTaxation of turnover - Undisclosed income on account of booking of bogus expenses - AO took the profit @10% of the gross receipt - HELD THAT:- Where one turnover can be taxed in the hands of two different assessee one being partnership firm M/s. Satyam Builders and another being proprietary concern of the assessee namely satyam Builders. Our answer is emphatically No. Therefore, the ld AO is directed to delete the addition in the hands of the assessee to the extent of the turnover considered in case of Ms/. Satyam Builder a partnership firm. Therefore, the ld AO will reduce the addition in the hands of the assessee on the turnover which has already been taxed in the hands of M/s. Satyam Builders as a firm. What should be the percentage of the gross receipt to be taken as net income from the suppressed turnover? - In case of M/s. Satyam builders, partnership firm, in the assessment proceeding u/s 143(3) read with section 147 of the Act for Ay 2008-09, the ld AO himself accepted it @8%. There is no change in the business model of the partnership firm as well as the business of the assessee. Therefore, we direct the ld AO to adopt the profit ratio of 8% as net profit on the gross receipts. Accordingly, ground Nos. 4 and 5 of the appeal are allowed.
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