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2018 (9) TMI 1307 - ITAT INDORERejection of books of accounts - assessee has not included expenses related to the cartage and freight in his books of accounts - Held that:- There is no dispute with regard to the fact that the A.O. would be within his power to reject books of accounts, if he is satisfied that the books of accounts placed before him do not give the correct figure of the profit. In the present case, admittedly, the assessee has not included expenses related to the cartage and freight in his books of accounts, by this it has distorted the correct figure of profit. Therefore, in our view, the assessing officer was justified in the present case to reject the books of accounts. Ground No.1 of the assessee’s appeal is dismissed. Profit estimation - adoption of gross profit on the basis of past history - Held that:- CIT(A) has adopted the profit on the basis of past history of the assessee. The only contention of the assessee in the present year is that gross turnover of the assessee has increased, therefore, the profit cannot be estimated merely on the basis of the past history. We are unable to accept the submissions of the assessee as the Ld. CIT(A) has rightly adopted the gross profit on the basis of past history and the impact of not taking into account the expenses related to freight and cartage. This ground of appeal of the assessee is also dismissed.
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