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Income Tax - Highlights / Catch Notes

Home Highlights February 2015 Year 2015 This

GP addition - once the provisions of section 145(3) are invoked ...

Income Tax

February 20, 2015

GP addition - once the provisions of section 145(3) are invoked then what should be a reasonable gross profit rate is required to be seen which is a finding of fact and on the basis of appreciation of evidence thus it is a pure finding of fact - HC

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  1. Addition on account of fall in GP - The AO has not invoked section 145(3) in its terms - Therefore, fall in G.P. rate cannot be made a reason for involving section 145(3) - AT

  2. Estimation of income - Rate of Gross profit (GP) - rejection of books of account - Since the average of past history of GP declared by the assessee is considered as a...

  3. Estimation of gross profit - assessee had given a reasonable explanation for the lower gross profit shown by it during the relevant previous year - addition for lower...

  4. Once the book results are rejected by invoking provisions of section 145(3) of the Act, no separate additions could be made under section 68 - AT

  5. Invocation of section 145(3) - existence of infirmities and discrepancies in the accounts maintained by the assessee was a pre-requisite for invoking the provisions of...

  6. Undisclosed profit from unaccounted sales - CIT(A) was fair and reasonable while applying the G.P. Rate at 20% on the undisclosed sales. - AT

  7. Disallowance u/s 40A(3) - when income of the assessee was computed by applying the gross profit rate, there was no need to look into the provision of section 40A(3) - AT

  8. Rejection of Books of Accounts - mere disclosure of a low net profit would not enable the AO to invoke the provisions of section 145(1) - HC

  9. Rejection of books of accounts - valuation of the closing stock - gross profit margin - Assessment was complete u/s 143(3) - After that, during survey u/s 133A, assessee...

  10. Gross profit addition - AO during the assessment proceedings, agreed to estimation of gross profit @ 56% of sales/turnover and this act of the assessee obviously stopped...

 

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