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2021 (4) TMI 1187 - AT - Income TaxRejection of books of accounts - Estimation of profit - AO estimated the profit at 15% of gross receipt - CIT(A), on the basis of the offer given by the assessee to buy peace and to avoid future litigation, sustained the addition of 1% of the turnover over and above the returned income - HELD THAT:- When, in the preceding three years the net profit rate had varied from 4.26% to 5.94%, it is not understood as to how and why the ld.CIT(A) has accepted the offer given by the assessee of additional income of 1% of the turnover which makes the net profit rate of 2.84%. Considering the totality of the facts of the case and considering the fact that net profit rate from A.Y. 2007-08 to 2009-10 varied from 4.26% to 5.94% and the net profit rate for the current year was shown at 1.84%, estimation of net profit rate of 4.5% under the facts and circumstances of the case will meet the ends of justice. Accordingly, the order of the CIT(A) is modified and the AO is directed to adopt the net profit rate of 4.5% on the turnover of ₹ 14,85,42,058/- as the net income of the assessee. The grounds raised by the Revenue are accordingly partly allowed.
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