TaxTMI 
TaxTMI 
2020 (6) TMI 80
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....the revision order u/s.263 solely on the ground that the finding was based on Audit Objection? 2. Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in holding that the order u/s.263 is bad in law, without appreciating the fact that Assessment Order u/s.143(3) is erroneous and prejudicial in nature in as much as the depreciation and interest were allowed as deduction after estimation of income thereby allowing double deduction to the assessee?' 2. The learned Tribunal has set aside the revisional order passed by the learned Principal Commissioner, Income Tax, under section 263 of the Act and restored the order passed by the Assessing Authority in the case of the assessee with the foll....
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....s of accounts for verification before the Assessing Authority, who found that there was some discrepancies in the books of accounts maintained, and therefore he resorted to best judgment by adopting 'market standards' and applied 8% rate of profit as income from business and thereafter, allowing deduction on interest and depreciation, computed the net income. The assessment even then resulted in refund of tax on account of excess TDS made by the Awarder of the contract. 4. Even this best assessment order was found to be erroneous by the learned Principal Commissioner of Income Tax under Section 263 of the Act, who passed the revisional order on 3.11.2015, holding that once the net income was estimated at the rate of 8%, the learned....
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.... the Commissioner. 8. Per contra, the learned counsel appearing for the Assessee Mr. A.S.Sivaraman submitted that the Assessing Authority was not justified in raising the income from 1.56 % of turnover declared by the Assessee to 8% without bringing on record any evidence for supporting such adoption of 8% of net profit. He further submitted that whether the Assessee filed any first appeal against the assessment order is not within his knowledge. He however supported the order passed by the Tribunal and urged that it is a finding of fact and no question of law arises from the order of the Tribunal. 9. Having heard the learned counsel for the parties, we are prima facie of the opinion that no question of law, as such, arises from the order....
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....expenses related to labours handling and others. The same was produced and on verification the following discrepancies were observed: 1. Bills/vouchers pertaining to the labour charges were self made and made in cash. 2. Applicability of TDS for the labour charges was also discussed. 3. Bills/vouchers pertaining to the Freight Handling were also not properly vouchers. 4. To make short for all these discrepancies, since as per market standards 8% profit is nominal in this line of business, the profits of the assessee company is recomputed at 8% as under: Turnover of Clearing and Forwarding Business Rs. 18,60,94,923 Net profit @ 8% Rs. 1,48,87,594 Less: Interest Rs. 81,67,676 Depreciation Rs. 19....