Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (8) TMI 817 - ITAT AHMEDABADAO passed u/s 143(3) - Rejection of books of accounts - HELD THAT:- The sale and purchase of the assessee is vouched and verifiable. The assessee has also maintained quantitative details in respect of diamonds purchased and sold by it as well as for processing of diamond. There is no adverse comment from the auditor that the profit cannot be computed from the books of accounts maintained by the assessee. In our opinion, the qualitative details of each piece of diamond is not necessary for computation of the income of the assessee. Income of the assessee can be very well computed on the basis of accounts already maintained by the assessee. In view of the above, we are unable to agree with the AO that there is defect in the system of method of accounting of the assessee which requires rejection of the book results u/s 145(3) and estimation of the GP. Valuation of the closing stock - HELD THAT:- No mistake in the valuation of the closing stock by the AO was pointed out by the learned counsel. We therefore accept the value of the closing stock determined by the AO. However, accepting the alternate plea of the learned counsel, we direct that the value of the closing stock will be taken as value of opening stock of the next year. Thus, the addition of Rs.46,16,251/- made by the AO to the valuation of the closing stock is upheld. The direction of the CIT(A) to make the addition by working out the net profit at the rate of 4% is hereby quashed. charging of interest u/s 234B and 234C - HELD THAT:- Both the parties agreed that it is consequential, we therefore direct the AO to recalculate the interest, if any, after determination of the income as per order. In the result, assessee’s appeal is partly allowed.
|