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2015 (6) TMI 199 - ITAT JAIPURTrading addition - rejection of book result U/s 145(3) - AO estimated the N.P. rate @ 10% - Held that:- The A.R. himself admitted before the Assessing Officer that Section 145(3) are squarely applicable in the case of assessee. The assessee has shown current outstanding liability as on 31/3/2008 at ₹ 70,83,850/-, which was more than 30% of expenditure under the head of salary and wages and also pending for more than three months, which is not possible in contractor line. The assessee's claim that, it did not receive the amount from the BSNL, therefore, wages were outstanding, which was received later on but the assessee has not submitted any evidence regarding the payment from the BSNL later on except written reply and also further subsequent withdrawal from the bank account and reimbursement of the salary and wages in cash. Therefore, learned CIT(A) was not right in holding that defects pointed out by the Assessing Officer cannot be ground of rejection of books of account U/s 145(3) of the Act. There is no justification by the learned CIT(A in confirming the addition of ₹ 1 lac without confirming the rejection of book result U/s 145(3) of the Act. The defects pointed out by the Assessing Officer are sufficient to reject the book result. However, we find that AO had estimated the income higher side and had not compared the past history of the case and also had not made any comparison with another case of similar line of business. Therefore, we confirm the addition @ 6% net profit subject to interest and remuneration to the partners. The Assessing Officer is directed to recalculate the income as per above findings given by the Bench. - Decided partly in favour of revenue.
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