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2022 (3) TMI 171 - ITAT DELHIUnauthenticated loose documents seized from the premises of some other party - Addition based on unauthenticated documents - HELD THAT:- Search conducted in the case of M/s. Kartika Gold Enterprises, the documents and details of purchase entered by M/s. Kartika Gold Enterprises have been found and seized. Based on the details of purchases, the Revenue authorities have added the entire quantum of the value of the sale of gold made by the assessee - addition of the entire amount cannot be held to be valid and there is no dispute that the sale to M/s. Kartika Gold Enterprises could not have been made without purchase of gold by the assessee. Hence, the cost of gold has to be deducted from the sale price and the profit earned by the assessee through the sale should be rightly brought to tax. The appropriate way to determine the profit earned by the assessee is to be based on the gross profit earned in the regular course of business. We find that the gross profit earned by the assessee as per the return was 1.42 per cent. as sustained by CIT (Appeals) with regard to the other transactions entered into by the assessee. Since, there is no dispute about the gross profit, keeping in view the other expenses which have already been debited in the regular books of account, we hereby hold that an amount of 1.9 per cent. of the total transaction would be the correct income evaded by the assessee. Appeal of the assessee is allowed for statistical purpose.
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