Only Net Profit Taxable on Unaccounted Sales, No Double Additions: Delhi ITAT

Malwa Packaging Vs DCIT (ITAT Delhi) Delhi ITAT : On Unaccounted Sales, Only Net Profit Can Be Taxed – Separate Additions for Expenses Would Amount to Double Addition The Delhi ITAT in the case of Malwa Packaging held that where unaccounted sales are detected during search proceedings, the Revenue cannot tax the entire turnover or again make separate additions for related expenses once profit is estimated on such sales. The Tribunal ruled that only a reasonable net profit element embedded in the unaccounted turnover can be brought to tax. During search proceedings u/s 132, the department...