2022 (2) TMI 430 - AT - Income Tax

Estimation of turnover - determining the income on estimate basis @ 1.25% of total turnover - addition of 1.25% sustained by the Ld. CIT(A) - HELD THAT- As the issue is squarely covered in assessee's own case, we accept this pray of the assessee and direct the Ld. AO to restrict the addition to 0.50%. Therefore, the Grounds are partly allowed.

Summary

Issues:
1. Determination of income on estimate basis
2. Determination of turnover and chargeable income
3. Consideration of loss commission
4. Determination of real income and comparables cases
5. Charging of interest under various sections
6. Grounds of appeal and their consideration

Analysis:
1. The appeal was filed against the order of the ld. CIT(A)-1, Rajkot for the Assessment Year 2007-08. The assessee challenged the determination of income on an estimate basis at 1.25% of total turnover. The ITAT noted that in a previous case, the addition was restricted to 0.50% of turnover for a similar issue. Considering this precedent, the ITAT directed the AO to restrict the addition to 0.50%, partly allowing the appeal.

2. The assessee also contested the determination of turnover and chargeable income by the Income-tax Officer and CIT(A). The ITAT reviewed the facts and previous decisions, ultimately deciding to restrict the addition to 0.50% of turnover, aligning with the precedent set in the assessee's previous case.

3. The consideration of loss commission by the Income-tax Officer and CIT(A) was also challenged by the assessee. The ITAT examined the submissions and directed the AO to restrict the addition to 0.50% of turnover, in line with the previous decision and the arguments presented.

4. The determination of real income and the absence of citing comparable cases were raised as issues by the assessee. The ITAT, after careful consideration of the facts and legal precedents, decided to restrict the addition to 0.50% of turnover, following the approach taken in the previous case.

5. The charging of interest under sections 234A, 234B, 234C, and 234D was contested by the assessee. The ITAT dismissed this ground of appeal as consequential in nature, without further adjudication.

6. The ITAT acknowledged the general nature of the sixth ground raised by the assessee, stating that it did not require adjudication. Ultimately, the appeal was partly allowed based on the considerations and precedents discussed in the judgment.