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2015 (11) TMI 1625 - AT - Income TaxN.P. determination - rejection of books of accounts - Held that:- We find that there are errors/inconsistencies in the maintenance of books of account because in several cases for the relevant AY booking of sales does not tally with the year of registration. Even the method of recognition of sale adopted by the assessee is inconsistent, defective and not in accordance with any recognized system of accounting. Even before the AO or before the CIT(A), the assessee could not explain the basis of booking of various construction expenses in respect of flats kept in stock in trade. In view of these differences, we find that the CIT(A) has rightly rejected the books of account by applying the provisions of section 145(3) of the Act and we find no infirmity in the order of CIT(A) in applying profit rate of 8%. Disallowance of expenses by invoking the provisions of section 40(a)(ia) - Held that:- In reply to other additions, it is clear that once net profit rate is applied, the expenses or other disallowances, since relating to business, cannot be made separately because the profit element of expenses or disallowances have already been considered while applying profit rate. Accordingly, we confirm the order of CIT(A). Appeal of revenue is dismissed.
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