Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 323 - AT - Income TaxBest judgement assessment - rejection of books of accounts - trading addition made on ground of decrease in G.P. rate - cash payments made on account of purchase - self made vouchers maintained - purchase not fully verifiable as no stock register was maintained - Held that:- In view of facts, rejection of books of account were justified since certained purchases remain unverifiable. However, trading addition at Rs.1,79,919/- is on higher side. It is seen that AO has not asked the reason for decline in GP rate. Further, making payment in cash does not attract any trading addition if it is not found that purchases are inflated. It was explained before CIT(A) that turnover was pursistently decreasing & there was a stiff competion in the market as market was flooded with the cheap Chinese furniture, therefore, turnover as well as profit was on decreasing side. It is further seen that though assessee has made purchases from few parties in cash however Vat was paid and bills were received & payments has also been made by cheque. Explanation of the assessee can not be rejected in totto. In view of aforesaid and decreasing trend of the profit, trading addition of Rs.40,000/- is sustained that will meet the end of justice - Decided partly in favor of assessee
|