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M/s. Silpa Projects & Infrastructures (India) Pvt. Ltd. Versus The Deputy Commissioner of Income-tax, Circle-4 (1) , Kochi And Vice-VersaOthers

2016 (7) TMI 954 - ITAT COCHIN

Estimation of income - Held that:- As regards the estimation made by the Assessing Officer at the rate of 6% on the turnover, no basis of whatsoever kind has been provided by the Assessing Officer and the same is made on the basis of surmises and conjectures and cannot be upheld. Accordingly, Revenue’s appeal is dismissed. - Out of the average gross profit of 16.94%, if the gross profit declared by the assessee at 16.50% is reduced, the difference comes to 0.44% which has been directed by th .....

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to be essentially excluded while estimating the income and accordingly, the Assessing Officer is directed to apply the gross profit rate of 0.44% after excluding the said turnover of ₹ 31,07,29,889/- at ₹ 59,45,76,475/-. It is ordered accordingly. Thus, assessee gets the part relief and appeal of the assessee is partly allowed. - ITA No. 224/Coch/2015, ITA No. 258/Coch/2015 - Dated:- 10-6-2016 - Shri B P Jain, AM And George George. K, JM For the Assessee : Shri C.B.M. Warrier, CA Fo .....

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as reduced the addition of ₹ 39,83,347/-. 2. The Commissioner of Income Tax(Appeals) has gone wrong in estimating the addition to the Gross profit at 0.44% on ₹ 90,53,06,364/- instead of ₹ 59,45,76,475/- which is the real turnover of the appellant for the assessment year. For the above reasons and the other arguments those may be put forward at the time of appeal hearing, the appellant may request to cancel the addition of ₹ 39,83,347/- to the income returned. 3. The Reve .....

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accepted that the net profit could be estimated, as there was no supporting bills and vouchers? The learned CIT(A) should have observed the fact that the total income estimated by the Assessing Officer is about 6% of the gross turn over which is fairly reasonable and therefore upheld the addition. 3. For these and other grounds that may be urged at the time of hearing, it is requested that the order of the Commissioner of Income tax(Appeals) may be set aside and that of the Assessing Officer re .....

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e on the basis of gross profit on the basis of average percentage for the assessment years 2009-10, 2010-11 and 2011-12 which was 16.94% as compared to 16.50% declared by the assessee and accordingly, he sustained 0.44% applied to the gross turnover of ₹ 90,53,06,363/- which works out to ₹ 39,83,347/-. The assessee as well as the revenue are in appeal before us against the order of the Ld. CIT(A). 6. The Ld. Counsel for the assessee argued that there is no dispute to the invoking the .....

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59,000.00 Labour Cess 16,41,186.00 Loading and Unloading 1,46,965.00 31,07,29,889.00 Therefore the said amount of ₹ 31,07,29,889/- should be excluded from the gross turn over of ₹ 90,53,06,363/- while making the estimation of income. 7. The Ld. AR, Shri C.B.M. Warrier, CA argued further with regard to the estimation made by the Assessing Officer, i.e., the rate of 6% on the turn over is without any basis and no basis of whatsoever kind has been brought on record and therefore, the es .....

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