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2012 (2) TMI 155 - ITAT, AHMEDABADCalculation of Profits - GP of preceding assessment year vis a vis average of last two assessment year - Held That:- In the case of Best Judgment assessment OR rejection of books, the estimates of income must be honest and fair and should not be arbitrary, although some element of guess work is necessary. There being no material to suggest that the GP rate applied by the CIT(A) was not reasonable or was without any basis, we uphold the order of the CIT(A) and the ground of the Revenue is dismissed. Additions on account of unverifiable purchases and unverifiable consumption - Held That:- When CIT has upheld the action of AO in rejecting books of account and applied GP rate there is no justification for making any addition on the basis of same rejected account books on account of the defects in the account books. Payment of PF & ESI before date of filing of return - Held That:- In view of Sai Consulting Engineers P. Ltd (Ahmedabad bench), deduction allowed under 43B.
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