Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 797 - AT - Income TaxEstimation of profit at 10%, based on the statement recorded during course of survey after considering the incriminating documents found at assessee’s business premises - books of accounts rejected in view of the admission of assessee of estimation of profit - subsequent retraction of statement - Held that:- During the survey operations, on the basis of incriminating documents the appellant himself admitted that the accounts of contract business were maintained in a rough manner. Appellant also admitted illegal payments. Assessee had not only accepted 10% net profit but also computed profit thereon and surrendered income and also agreed to pay tax thereon. Therefore, keeping in view such glaring defects in the books of account and the statement of the appellant during the course of survey A.O. has rightly applied provisions of section 145(3). When the profit is accepted by the assessee at 10 %, all the expenditure/deductions allowable under the provisions of Section 30 to 38 are deemed to be allowed. Accordingly, we confirm the action of the lower authorities for dis-allowance of claim of depreciation. It is not merely question of rejection of books of account, but the issue of application of 10% profit rate as accepted by the assessee himself is based on the incriminating documents found during survey and the non-maintenance of basic records to indicate true and correct profit, therefore, plea of the assessee to the effect that the rate of profit decided by the AO in cases of other civil contractors should be applied, is of no substance where facts are materially different - Decided against assessee
|