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2013 (3) TMI 687 - AT - Income TaxAdhoc disallowance of expenses deleted Rejection of books of accounts - N.P. addition - Held that:- After rejection of the books of accounts, the A.O. can look towards the past history of the assessee or of any comparable case. He cannot draw support from any and every decision without comparing the facts of that case with that of the assessee. He cannot tear out of context by cherry picking no such addition can be allowed to be made. The A.O. has adopted the N.P. rate but has ignored the N.P. Rate of the assessee disclosed in the immediately preceding year. The N.P. Rate of this year is better than the earlier year. Therefore, no addition, like one made by the A.O. is not justified. The ld. CIT(A) has also confirmed the same. On a wrong premise by following the reasons given by the A.O. and by not considering the contention of the assessee. In out considered opinion the first time imposition of Entry Tax of huge amount of ₹ 9,69,454/- as per assessee Paper Book page 18, which fact has not been denied or disputed by the revenue, is a good ground and factor to justify small fall in the G.P. Rate. Thus delete the entire addition Interest received from F.D.Rs. and N.S.Cs. placed with Government while obtaining contract from Government is required to be assessed as income from business. Since this interest income is business income which has been considered in estimation of income by applying N.P. rate, we, therefore, are of the considered view that no separate addition is warranted.
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