Case Law Details
M/s Aditya Enterprise Vs ITO (ITAT Kolkata)
In the instant case, the profit was determined on estimated basis due to the fact that assessee failed to produce books of account during the assessment. Once then profit has been determined on estimated basis then in our considered view no disallowance can be made on account of sundry creditors. It is undisputed fact that these sundry creditors were arising from the purchases made by assessee and therefore the same cannot be added without disturbing the purchases. Moreover in the instant case the profit has been determined on estimated basis. Thus in our considered view there cannot be any disallowance of sundry trade creditors.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-13, Kolkata dated 30.12.2015. Assessment was framed by ITO Ward-41(1), Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) vide his order dated 22.03.2013 for assessment year 2010-11. The grounds raised by the assessee per its appeal are as under:-
“1. For that on the facts and in the circumstances of the case, Ld. CIT(A) was not justified in confirming the addition of Rs.5,26,350/- made by the AO on account of gross profit, which was wrongly estimated @ 2% of the turnover.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
