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2004 (8) TMI 35 - HC - Income TaxBooks of account – gross profit rate - AO rejected the books of the assessee by invoking S. 145(2) and applied a GP rate of 25 per cent. on the total sales and made an addition - A perusal of the order of the Tribunal shows that rejection of books of account is not based solely on the absence of stock registers. It has been observed that no quantity-wise details had been maintained and as such it was not possible to compare the input with the output. It was also noticed that the sales at the retail counter were being conducted on the basis of small slips in place of regular sale bills and the accounts were audited on the basis of slips only. These defects coupled with the low gross profit rate as compared to the gross profit rate applied in the earlier years - Tribunal was of the view that the books of account had been correctly rejected. The Tribunal further held that the gross profit rate of 25 per cent. as applied by the Assessing Officer was based on the past history of the case and in the absence of any distinguishing feature, the same could not be disturbed. - findings recorded by the Tribunal are pure findings of fact
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