ITAT ruled on unexplained purchases under s.69C and unaccounted ...

Tax Authority Sets 8% Profit Rate on Unexplained Purchases Under Section 69C, Rejects Double Addition for Unaccounted Sales

February 15, 2025

Case Laws Income Tax AT

ITAT ruled on unexplained purchases under s.69C and unaccounted sales. For unexplained purchases in non-edible oil business, ITAT directed estimation of profit at 8% based on industry GP rates and assessee's past performance (weighted average GP of 7.96% during AY 2014-18). Regarding unaccounted sales addition based on seized Shubh Laxmi Group documents, ITAT rejected AO's addition since statement of witness was used without providing cross-examination opportunity, violating natural justice principles. Further, AO had already made additions for unaccounted purchases and short stock as unaccounted sales, making separate sales addition unjustified. ITAT emphasized past trading history as key determinant and applied doctrine of equity in profit estimation.

View Source

← Previous Next →

ITAT ruled on unexplained purchases under s.69C and unaccounted ...

Tax Authority Sets 8% Profit Rate on Unexplained Purchases Under Section 69C, Rejects Double Addition for Unaccounted Sales

February 15, 2025

Case Laws Income Tax AT

You may also like:

Profit estimation on unaccounted turnover: AO estimated 8% profit based on seized material, which was reduced to 5% by CIT(A). ITAT held that in case of profit...

The High Court addressed the issue of liability to pay excess tax collection to the Government when the respondent's tax liability is higher than the tax collected. The...

Rate of value added tax (VAT) - samosa - whether the rate of tax on Samosa should be 8% or 5%? - samosas are to be taxed at the rate of 8% for the first six months and,...

Construction services for residential units less than 60 square meters attract 12% GST rate, reduced to 8% effective rate after deducting one-third value on account of...

The High Court reviewed a case involving a rough assessment of tax quantum and the validity of a Best judgment assessment for determining net profit in a civil work...

Service tax demand on Goods Transport Agency (GTA) services rendered on reverse charge basis set aside as appellant did not collect service tax from service recipient....

In a case regarding GP estimation, the Assessing Officer (AO) applied an 8% profit rate on the assessee's turnover, which did not match Form 26AS. The CIT(A),...

NP rate determination - net result of trading operations of assessee JV - CIT(A) while upholding this exorbitant profit rate has observed that in the case of M/s KIEL...

Rate of tax - the tax on the sale of coal within the said limit was @ 4 %. In view of Section 8 (2) (a) of the CST Act, sale of coal made by the revisionist without...

Service tax rate - chargeable @ 5% or @8% - Since the taxable event in the present case took place prior to 14.05.2003, the rate of tax applicable prior to that date...

Unexplained income - on money receipts - Peak addition - Once the business profit is determined at 8% of undisclosed receipts, then what is required to be seen is...

Dispute centered on Rule 21(8) of Punjab VAT Rules regarding input tax credit (ITC) calculations following tax rate reduction on iron and steel goods. SC upheld HC's...

Estimation of profit - AO applying a profit rate of 20% on the contract receipt against the rate of profit declared by the appellant at 8.13% - CIT(A) directing the AO...

Deemed divided u/s 2(22)(e) requires arriving at accumulated profits by deducting depreciation as per Income-tax Act rates. Bombay High Court in Navnit Lal C Javeri and...

The assessee, a foreign airline company and tax resident of the USA, engaged in the business of operating aircraft in international traffic, obtained approval from DGCA...

Quick Updates: