Loading judgment…
Facts
During a search and seizure operation, incriminating material including cash receipts was found. The assessee firm claimed these receipts were for additional works and did not belong to them. The AO added these amounts as unexplained money and expenditure.
Held
The Tribunal held that the estimation of profit by the CIT(A) at 20% was on the higher side and reduced it to 12% on the unaccounted turnover. The Tribunal agreed with the CIT(A) regarding the allowance of telescopic benefit for unaccounted expenditure.
Key Issues
Estimation of profit on on-money receipts and addition of unexplained expenditure.
Sections Cited
132, 143(3), 142(1), 132(4), 69A, 69C
AI-generated summary — verify with the full judgment below
Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.
Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश की प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/ The Assessee : M/s. Kavya Avenues LLP 7-5-64, Ground Floor Pandurangapuram Visakhapatnam – 530003 Andhra Pradesh 2. राजस्व/ The Revenue : DCIT – Central Circle – 1 5th Floor, Direct Taxes Building MVP Colony, Visakhapatnam – 530017 Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. तिभागीय प्रतततितर्, आयकरअिीिीयअतर्करण, तिशाखािटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गार्ाफ़ाईि / Guard file आदेशािुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
Page No. 12