2010 (8) TMI 1052 - HC - Income Tax

Summary

Issues involved: Appeal under s. 260A of the IT Act, 1961 regarding addition of estimated GP, unexplained cash credits, and disallowed interest.

Estimation of GP:
The AO estimated GP @ 3% on gross sales, adding &8377; 10,73,822. However, CIT(A) found fixed commission rates regulated by Government agencies, leading to no justification for higher net profit estimation. Tribunal concurred, stating no adverse findings on income suppression, thus no need for higher GP estimation. Both CIT(A) and Tribunal concluded no question of law arose.

Unexplained Cash Credits and Disallowed Interest:
AO treated unsecured loans of &8377; 41,72,462 as unexplained cash credits under s. 68, disallowing interest of &8377; 3,84,282. CIT(A) noted all details of creditors provided, with confirmations and PANs available. CIT(A) found primary onus discharged by submitting confirmations, with no new credits in the year. Tribunal agreed, finding identity and genuineness of transactions proven, no material to disprove explanation. Tribunal and CIT(A) both concluded no question of law arose, dismissing the appeal.