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2019 (4) TMI 1815 - ITAT JAIPURRejection of books of accounts - trading addition - GP Estimation - HELD THAT:- We are of the view that the books of accounts have been rightly rejected by the Assessing officer as the assessee failed to produce the books of accounts for verification and in absence thereof, it is difficult for the Assessing officer to determine whether the trading results so declared by the assessee are true and correct. Regarding estimation of profits, we find that the assessee has declared better net profit rate as compared to earlier years and therefore, even where the books of accounts are rejected, given better results declared by the assessee as compared to average of last five years, the trading addition so made is directed to be deleted. In the result, ground no.1 of the Revenue’s appeal is allowed and the ground no. 2 is dismissed. Addition on account of excess agriculture income shown by the assessee - HELD THAT:- A.O. estimated the cost on sale proceeds to be less is also not clear since as per the A.O's own working, the rate estimated was ₹ 10,000/- per bigha in the earlier year but he increased it to ₹ 11,500/- per bigha in this year without any basis, whereas as per the assessee's working it comes to ₹ 7074/- per bigha. When the assessee's cost on hired land is much less than the estimation resorted by the A.O., then in order to establish how the cost of agricultural proceeds on self owned land could be double, the Assessing officer should have brought some scientific or practical findings on record, which he failed to do. By resorting to this entire hypothetical averaging, he has aimed to reduce the agricultural receipts by an amount of ₹ 1, 76,330/ -, which constitutes around 7% of the total agricultural receipts shown by the assessee. Whole working of the A.O. is found to be neither backed by any enquiries, nor any basis which is sustainable. The addition by way of reduction in the claim of agricultural income without holding any expenses as false is held to be unjustified and directed to be deleted Addition u/s 68 on account of unexplained cash deposits - HELD THAT:- CIT-A has given a specific finding that cash deposit receipts are matching from the bank book & ledger accounts, we find that the source of cash deposit in his bank accounts has been reasonably explained to be out of assessee’s transportation business and agriculture produce. Therefore, we affirm the order of the ld CIT(A) to the extent where he has directed the deletion of addition of 68 of the Act. In the result, the ground of revenue’s appeal is dismissed Bank account not disclosed at the time of filing of the return of income - HELD THAT:- Such bank account maintained with the Axis Bank was not reported by the assessee at the time of filing of return of incomeand the fact that the assessee is engaged in the transportation business and in absence of any contrary findings by the lower authorities regarding any other source of income, such cash deposits are treated as undeclared receipts from the assessee’s transportation business and net profit on such undeclared business receipts is directed to be applied. Given that the assessee has declared net profit of 2.39% which has been accepted by us while adjudicating earlier grounds, the same net profit is directed to be applied on such business receipts
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