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2016 (11) TMI 1415 - AT - Income TaxRejection of books - profit estimation - Held that:- When the asssessee is not maintaining the books of account properly and the correct income of the assessee could not be computed on the basis of the books of account maintained in the course of business, the books of account can be rejected. The assessing officer can estimate the profit on the basis of the material available on record. In the case before us, the books of account of the assessee are not rejected by the assessing officer. Merely because, the assessee has disclosed the profit less than 5% in some of the project, that alone cannot be a reason for the assessing officer to estimate the profit uniformly at 5% for all the projects. It is for the assessing officer to examine the books of account and find out why he could not accept profit of the assessee on the basis of books of account maintained. Since such an exercise was not done and the books of account of the assessee was not rejected, this Tribunal is of the considered opinion that the CIT(A) has rightly allowed the claim of the assessee. - Decided against revenue
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