| |
| The Tax Publishers2022 TaxPub(DT) 1461 (Jp-Trib) : (2022) 095 ITR (Trib) 0092 INCOME TAX ACT, 1961
Section 28
Entire sales could not be added as income of assessee but addition could be made only to the extent of estimated profits embedded in sales.
|
Business income - Chargeability - Difference of sales as per VAT return and the declared sales -
AO completed scrutiny assessment after making addition, being difference between the sales as per Value Added Tax (VAT) return and the declared sales. On appeal, CIT(A) upheld the action of the AO. Held: Entire sales cannot not be added as income of assessee but addition can be made only to the extent of estimated profits embedded in sales. Hence, the matter was restored back to the file of the AO with a direction to make addition only to the extent of estimated profits embedded in sales while keeping in view the GP declared by the assessee on the total sales for the year under consideration.
Followed:CIT v. President Industries (2000) 158 CTR 372 (Guj-HC) : 2002 TaxPub(DT) 56 (Guj-HC) and K. Venkatesh v. ITO (2016) 47 CCH 447 (Bang-Trib).
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 36(1)(iii)
 SUBSCRIBE FOR FULL CONTENT
|