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| The Tax Publishers2020 TaxPub(DT) 0690 (Karn-HC) INCOME TAX ACT, 1961
Section 68
Where there was no allegation by assessee that AO had pressurized for addition, nor there being any contention that as per profit and loss account no such addition of 2% came to be made, since gross profit declared by assessee at 5.33% on sales turnover, which was found by AO to be considerably low on comparison basis namely in comparison with other traders and as such addition of 2% was made by AO as it would be reasonable for which the assessee himself had accepted.
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Income from undisclosed source - Addition under section 68 - Suppressed sale - Low sales turnover
This appeal was filed by assessee challenging the order passed by Tribunal relating to assessment year 2014-15 whereunder appeal filed by assessee came to be dismissed by upholding addition of 2% gross profit by AO on account of low sales turnover declared by assessee. Held: Tribunal had rightly observed when there was no allegation by assessee that AO had pressurized for addition, nor there being any contention that as per profit and loss account no such addition of 2% came to be made, held that appeal was bereft of merit and accordingly rejected the same. Gross profit declared by assessee at 5.33% on the sales turnover, which was found by AO to be considerably low on comparison basis namely in comparison with other traders, who were in the same line of business and as such addition of 2% was made by AO as it would be reasonable for which the assessee himself had accepted. Consequently, appeal deserved to be rejected.
REFERRED :
FAVOUR : Against the assessee
A.Y. :
IN THE KARNATAKA HIGH COURT
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