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2010 (12) TMI 886 - AT - Income TaxRejection of book of accounts - Addition - Estimation of gross profit @10% - since the books of account, bills and vouchers are not available, the book result stand rejected u/s 145(3) and he therefore, went ahead for estimating the income - assessee replied that the bills are prepared when each process is completed as on the date of balance sheet and the revenue is booked for total process wise work carried out by the assessee and therefore, there is no work in progress - The assessee claimed before the authorities below that bills are prepared at the end of the financial year and there was no work in progress and there was no stock of raw material which is supported by TDS certificates - it is clear that addition made and sustained by the authorities below is still excessive and unreasonable. The authorities below in the absence of books of accounts, bills, vouches and other details rightly rejected the book results of the assessee - there is no basis to compute the addition on account of work in progress which has no basis at all. The separate addition made on account of work in progress/closing stock is accordingly deleted Regarding disallowance of staff salary - Since the profit of the assessee is estimated by applying GP rate of 10% and the details of books of accounts have not been produced before the authorities below, no further addition is required to be made as per findings given above - appeal of the assessee is partly allowed
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