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2016 (8) TMI 1216 - AT - Income TaxReopening of assessment - rejection of books of accounts - trading addition - Held that:- As compared to the last year after ignoring the surrendered business income of ₹ 1.10 crores the assessee has shown better net profit. Further the assessee has also explained that during the year it has to incur substantial higher amount of outside job work expenses which is 71.52 lacs compared to 45.37 lacks and rebate on work done of ₹ 20.76 laks compare to 3 lakhs and therefore there is a downfall in the gross profit. The books of account have been produced during the course of assessment proceedings and outside job work rebate on works and sales tax demand of this expenditure have not been found not to have been incurred for the purpose of business. As assessee financial results have shown better performance during the year compared to previous year, on which ld AO and CIT (A) both have relied for making addition to the income of the assessee in current year, no further addition is possible in the hands of the assessee during the year. In view of this we reverse of the finding of the ld CIT(A) in substituting the addition of ₹ 4345658/- against the addition made by the AO on ₹ 3352078/- rejecting the books of account. Hence, we hold that the addition of ₹ 4345658/- is not sustainable in the hands of the assessee. - Decided in favour of assessee.
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