2013 (7) TMI 1125 - AT - Income Tax

Summary

Issues involved: Whether the Appellate Tribunal ITAT KOLKATA was justified in directing the AO to tax the gross receipt including the disclosed and undisclosed receipt at the net rate of 10%.

Summary:
The Revenue appealed against the decision of the ld. CIT(A) directing the AO to tax the gross receipt, including disclosed and undisclosed receipts, at a net rate of 10%. The Tribunal noted that a similar issue had been addressed in the assessee's case for A.Yr. 2004-05, where the Tribunal had directed the taxation of 10% of undisclosed and disclosed receipts. The ld. CIT(A) in the current case also restricted the addition in the assessee's hand to 10% of such receipts. The Revenue contended that the taxation of net profit alone at a high figure was not justified, leading the assessee to file a Cross Objection.

Upon careful consideration, the Tribunal found that the issue was indeed covered by its decision in the assessee's case for A.Yr. 2004-05. The Tribunal had previously upheld the taxation at 10%, which was also confirmed by the ld. CIT(A) in the current case. The facts considered by the AO and the ld. CIT(A) were in line with the Tribunal's decision for A.Yr. 2004-05. The Cross Objection filed by the assessee was dismissed as the income was deemed taxable at 10%. The ld. CIT(A) rejected the submissions of the assessee, leading to the dismissal of the Revenue's appeal and the assessee's Cross Objection.

Ultimately, the Tribunal upheld the decision of the ld. CIT(A), resulting in the dismissal of both the Revenue's appeal and the assessee's Cross Objection. The appeal of the Revenue and the Cross Objection of the assessee were both dismissed.