Held that the Commissioner (Appeals) is\u00a0 justified in rejecting the extrapolation made by the Assessing Officer on the total turnover of the assessee because, if there were sales made outside the books of account to certain parties, the assessee\u2019s entire turnover could not be taken as suppressed turnover in the absence of any documentary evidence to substantiate it.\u00a0 The addition of gross profit ratio of 8.6 per cent. of such sales the gross profit ratio declared by the assessee on total sales as calculated and confirmed by the Commissioner (Appeals), is\u00a0 upheld.\u00a0 Whatsapp chat messages did not pertain to the year under consideration and, therefore, the extrapolation is\u00a0 justified only with regard to these three parties, and the addition is\u00a0 to be reduced accordingly. Order of CIT(A) is affirmed. (AY.2021-22)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 153A : Assessment-Search-Suppression of sales-Three parties-Extrapolation of sales justified only as regards three parties-Order of CIT(A) restricting the gross profit rate only in respect of three parties is justified. [S. 132, 153C] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-52432","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dDG","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=52432"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52432\/revisions"}],"predecessor-version":[{"id":52433,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52432\/revisions\/52433"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}