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2014 (9) TMI 427 - HC - Income TaxRejection of books of accounts u/s 145(3) – Adoption of GP @ 20% against 40% - Held that:- The assessee had suppressed sales and had also suppressed the expenses - once the books of accounts of the assessee are rejected, a fair estimate of the profits needs to be made – Tribunal rightly held that the adoption of net profit rate by the CIT(A) was not justified once the books of accounts were rejected – CIT(A) could not have applied the net profit rate while computing the gross profits - the Tribunal on the basis of the self same material has estimated the gross profit at 20% - the gross profit has been determined on the basis of estimate - The estimate to be made in a particular case is largely a question of fact – the order of the Tribunal is upheld – Decided against revenue.
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