Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 787 - AT - Income TaxEstimation of income - NP Determination - rejection of books of accounts - AO while estimating the income of the assessee has applied the Net Profit rate of 6.50% for the assessment year 2010-11, 8.50% for the assessment years 2012-13 and 13-14 - HELD THAT:- AO has not made any efforts to find out the comparable rate of NP in identical business or otherwise prevailing rate in this business as carried out by the assessee. Even the AO has not considered the assessee’s own Net Profit declared in the preceding year which was not disputed by the Department, accordingly the adoption of NP rate @ 6.5% and 8.5% respectively without any basis or comparative instances is not justified. Hence, following case of M/s. Dynamic Engineers Ltd. Vs. ACIT [2020 (1) TMI 1104 - ITAT JAIPUR]the trading addition made by the AO is deleted. Addition under the head Income from Other Sources - HELD THAT:- Since the addition made by the AO on account of trading income based on net profit rate applied by the AO has been deleted and the income declared by the assessee is accepted while deciding the ground no. 1, then no separate addition on account of this income which are already part of the Profit & Loss account and considered in the total income declared by the assessee in the return of income is called for. Hence the addition made on this account is deleted. - Decided in favour of assessee.
|