Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax-I, Kanpur Versus Smt. Laxmi Mehrotra

2015 (9) TMI 754 - ALLAHABAD HIGH COURT

Income from undisclosed sources - assessee failed to offer any explanation whatsoever regarding the source of investment in such suppressed purchases - application of N.P. rate - ITAT deleted the addition - Held that:- 0nce the books of account were rejected, the best method of estimating the income of the appellant was to apply the net profit rate on the total purchases of the appellant. Since only the total purchases were verifiable the appellate authority found that the rate of 6% towards pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing being based on appreciation of evidence requires no interference.

In the light of the aforesaid, we are of the opinion, that the deletion of suppressed purchases was rightly made by the first appellate authority and was also justified in estimating the income by applying a net profit rate of total purchases made by the assessee. - Decided against revenue. - Income Tax Appeal No. 586 of 2007 - Dated:- 14-9-2015 - Hon'ble Tarun Agarwala And Hon'ble Surya Prakash Kesarwani, J .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which it was indicated that the assessee failed to produce the books of account and the relevant documents and, therefore, the correctness of the trading results could not be verified. The assessing officer applied the net profit rate of 10% to compute the profit of the assessee and also added ₹ 56,65,753/- towards suppressed purchases from undisclosed sources. The assessee, being aggrieved, filed an appeal, which was allowed. The appellate authority deleted the suppressed purchases of  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ooks of accounts. However, once the books of accounts were rejected, the best method of estimating the income of the appellant was not the one which was adopted by the AO. It would have been a better course to adopt and apply a net profit rate on the total purchases of the appellant as only the total purchases were verifiable. Neither the sale were verifiable nor the expenses were verifiable. If it is accepted that the appellant was making sales to the unlicensed dealers, the practice in that tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the Department has not been able to locate any assets represented by the estimate of income. On the contrary, I find in the assessment record a letter written by the Addl. Director of Income-tax, Kanpur which states that the appellant was living in a rented house and was having no assets. There are no immovable properties in the name of appellant or her husband. Thus the fact that the appellant was not having any worthwhile assets only confirms the view taken by me that the investments in p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rchases. The working is made as under- 6% of ₹ 1,63,75,285/- = ₹ 9,82,517/-. The AO is directed to give the appellant benefit of the net profit already disclosed by her and make the addition of the balance." 2. The Department, being aggrieved, filed an appeal which was dismissed, against which the present appeal has been filed, which was admitted on the following substantial questions of law: "Whether on the facts and in the circumstances of the case, the Hon'ble Tribun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version