https://www.taxtmi.com/caselaws?id=427106 In cases of suppressed sales or unaccounted turnover, only the profit element embedded in the receipts can be taxed, because income tax applies to profits and gains rather than gross turnover. The ITAT found that the assessee had disclosed net profit on accounted turnover, that the unaccounted turnover was only part of overall business receipts, and that seized material also indicated unaccounted expenditure in earning such receipts. It therefore rejected taxation of the entire admitted turnover and confined the addition to a reasonable estimate of net profit on the unaccounted turnover. en-us Tue, 30 Aug 2022 00:00:00 +0530 Thu, 01 Sep 2022 13:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427106 In cases of suppressed sales or unaccounted turnover, only the profit element embedded in the receipts can be taxed, because income tax applies to profits and gains rather than gross turnover. The ITAT found that the assessee had disclosed net profit on accounted turnover, that the unaccounted turnover was only part of overall business receipts, and that seized material also indicated unaccounted expenditure in earning such receipts. It therefore rejected taxation of the entire admitted turnover and confined the addition to a reasonable estimate of net profit on the unaccounted turnover. Case-Laws Income Tax Tue, 30 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427106