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2012 (5) TMI 653 - ITAT HYDERABADRejection of books of accounts - estimation of NP - Disallowance u/s. 40(a)(ia) - Held that:- Where the books of account have been rejected the revenue cannot rely on the same books of account for making any other addition. It was also held that when an estimate is made towards income of the assessee, it is in substitution of the income that is to be computed u/s. 29 and in other words, all the deductions which are referred to u/s. 29 are deemed to have been taken into account, while making such an estimate. This will also mean that the embargo placed in section 40 is also taken into account. There cannot be any further addition u/s. 40A(3), 40(a)(ia) of the act or towards prior period income. However, we make it clear that the income so determined consequent to this order, after considering the above directions, shall not go below the income returned by the assessee for the assessment year under consideration, if so returned income to be considered.
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