KRISHNA GRAM UDYOG SAMITI,SANGRUR vs. DCIT, LUDHIANA

ITA 288/CHANDI/2017Status: DisposedITAT Chandigarh25 May 2018AY 2002-0311 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that making separate additions for both Gross Profit and Net Profit is a double estimation and contrary to accounting principles. The Tribunal revised the GP estimation and deleted the addition on account of Net Profit.

What were the facts?

The assessee's books of accounts were rejected during assessment proceedings following a search and seizure operation. The Assessing Officer made additions based on estimated Gross Profit (GP) and Net Profit (NP) ratios. The CIT(A) confirmed these additions.

What were the issues?

Whether separate additions for estimated Gross Profit and Net Profit are permissible, and the correctness of the GP estimation rates applied by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 132,Section 133A,Section 153C,Section 263,Section 143(2),Section 142(1),Section 44AB,Section 145(3)

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Cases cited in this judgment(5)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DIVISION BENCH ’A’, CHANDIGARH

Before: SHRI SANJAY GARG & DR. B.R.R. KUMAR

For Respondent: Dr. Gulshan Raj
Hearing: 12/04/2018Pronounced: 25/05/2018

PER BENCH:

All the above appeals have been filed by two different Assessees against

the separate orders of the Ld. CIT(A)-5, Ludhiana.

2.

Since the issues involved in all the appeals are common therefore they

are being disposed off together by way of this common order.

3.

Following grounds have been raised in case of Krishna Gram Udyog

Samiti:

1.

That the Ld. CIT(A) has erred in confirming the action of the Ld. A.O. in making an addition of Rs. 14,49,382/

The order continues below.

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