https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=263873 https://www.taxtmi.com/caselaws?id=263873 Addition on gross profit difference between server copy and books of accounts - Held that:- Admittedly, there is a difference of Rs. 25,84,844/-, when the assessee’s books of account compared with the stock. There is no dispute on this issue. Therefore, the ld. AR’s submission that net profit to be considered, cannot be accepted, as all the expenditure is relating to the business of the assessee and already debited in the profit and loss account. There is no iota of evidence to suggest that any further expenditure incurred relating to unaccounted business. Being so, we are not in a position to uphold the argument of the ld. AR. He also submitted that since, the assessee has offered huge income of Rs. 7,20,07,082/- to the next A.Y., which also includes sale of this impugned stock, separate addition not to be made in this A.Y. In our opinion, each A.Y. is an independent A.Y. There is difference in stock which said to be unaccounted in this A.Y. and on that basis un-accounted sales are arrived for this assessment year and the income was estimated by applying GP rate, which is justified. - Decided against assessee. Benefit for telescope of addition made in immediately preceding year, as income on excess sales, against excess stock denied - Held that:- Commissioner of Income-tax(Appeals) confirmed the addition of Rs. 67,015/- but he failed to give any finding regarding telescope of addition of Rs. 2,47,630/- which is added as income in the earlier assessment year and not adjudicated ground Nos. 1 & 2 raised before him which reads as follows: “(1) the Commissioner of Income-tax(Appeals) ought to have given a finding on the ground of appeal praying for telescope of addition made in immediate preceding year, as income on excess sales, against excess stock found on 29-01-2009 (2) Though excess stock found as on 29-01-2009 was included in returned for assessment year 2009-10, the Commissioner(Appeals) ought to have discussed the submission made to reduce it by the amount of such addition made in assessment year 2008-09. Accordingly, we remit this issue to the file of the Commissioner of Income-tax(Appeals) to decide the issue in accordance with law. - Decided in favour of assessee for statistical purposes. Addition toward excess stock of jewellery - Held that:- AR wanted the basis for preparation of this excess stock. The stock was taken in the presence of the assessee, compared with the letter dated 27.1.2009 issued by it. Actually, the entire process was taken place in front of the assessee, without challenging the difference of stock, the assessee wanted to know the basis for excess stock. In our opinion, the plea of the assessee is devoid of merit. The computation stated above is self-explanatory and based on the physical stock as well as the letter issued by the assessee. Being so, there is no merit in the argument of the ld. AR and this ground is rejected. - Decided against assessee. Case-Laws Income Tax Fri, 19 Jun 2015 00:00:00 +0530