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2017 (12) TMI 854 - ITAT HYDERABADRejection of books of accounts - estimation of income - Best Judgement Assessment - Held that:- It is true that in earlier years, the profit declared by assessee on the turnover was only 0.3% and 0.5%. The return was accepted u/s. 143(1) of the Act. It is also a fact that assessee has not appeared before AO and so he has no option than to reject the books of account. Therefore, to the extent of rejection of books of account, I agree with the findings of Ld.CIT(A). However, the AO as well as CIT(A) have not given any comparable cases for estimation at 2%. As assessee has not furnished the books of account for verification and in earlier years, the return of income was accepted u/s. 143(1) and not scrutinized, it is of the opinion that the income can be estimated at 1% of the turnover given in the facts of the case. Therefore, the AO is directed to modify the order restricting the profit estimation to 1% of the turnover. The grounds are accordingly, partly allowed.
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