Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 1489 - ITAT JAIPURTrading addition - lumsum/ adhoc addition on account of labour expenses on estimation basis - Non rejection of books of accounts - HELD THAT:- ITAT Jaipur Bench in the case of Goodwill Impex Ltd vs DCIT [2019 (3) TMI 1456 - ITAT JAIPUR] had categorically held that where the assessee company had declared better trading results as compared to previous year and such result provides a reasonable basis to hold that there should not be any addition in the hands of the assessee company. AO had not detected any defect in the books of the assessee and AO has not invoked the provisions of section 145(3) of the Act for rejecting the books of account of the assessee but made the lumsum/ adhoc addition on account of labour expenses on estimation basis without finding any defects in the books of account and vouchers of the assessee. Hence once the assessee company had declared better trading results as compared to previous year, such results provide a reasonable basis to hold that there should not be any addition in the hands of the assessee company. Thus in the light of the above discussions and keeping in view the entirety of the facts and circumstances of the case, the addition so made by AO and restricted by ld. CIT(A) are deleted. Thus the solitary ground of the assessee is allowed.
|