Only Profit on Unaccounted Sales Taxable; 12% NPR Upheld: ITAT Ahmedabad

Sankalp Recreation Pvt. Ltd. Vs ACIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has ruled that in search-related assessments, only the net profit element of unaccounted receipts should be taxed, not the entire gross amount. In the case of Sankalp Recreation Pvt. Ltd. vs. ACIT, the tribunal also set aside the disallowance of delayed Provident Fund (PF) and Employee State Insurance (ESIC) contributions for several years, citing a lack of incriminating material found during the search. The case stemmed from a search operation under Section 132 of the Income Tax Ac...