https://www.taxtmi.com/caselaws?id=419181 The appeal in ITA No. 2001/Mum/2018 for A.Y. 2013-14 challenged the addition made by the ld. AO by estimating profit percentage at 30% for advances received, leading to a tax liability of Rs. 17,28,09,395. The Tribunal ruled in favor of the assessee, stating that the revenue lacked grounds to tax the opening balance of advances using a different profit percentage. Regarding interest under sections 234B and 234C, the Tribunal clarified that interest should only be levied on the returned income. The issue of penalty under section 271(1)(c) was deferred for future proceedings. The appeal was partly allowed, emphasizing accurate profit estimation, proper interest calculations, and timing of penalty assessments. en-us Wed, 23 Feb 2022 00:00:00 +0530 Fri, 04 Mar 2022 08:59:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=419181 The appeal in ITA No. 2001/Mum/2018 for A.Y. 2013-14 challenged the addition made by the ld. AO by estimating profit percentage at 30% for advances received, leading to a tax liability of Rs. 17,28,09,395. The Tribunal ruled in favor of the assessee, stating that the revenue lacked grounds to tax the opening balance of advances using a different profit percentage. Regarding interest under sections 234B and 234C, the Tribunal clarified that interest should only be levied on the returned income. The issue of penalty under section 271(1)(c) was deferred for future proceedings. The appeal was partly allowed, emphasizing accurate profit estimation, proper interest calculations, and timing of penalty assessments. Case-Laws Income Tax Wed, 23 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=419181