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2012 (9) TMI 681 - ITAT INDORERejection of books of account u/s 145 - AO apply GP rate to calculate Net profit – Held that:- As the books was not produced before the AO nor before CIT(A) for verification and the audit report mentioning fact that there was no requirement for deduction of TDS on hire charges paid which was below the prescribed limit, cannot be accepted in the absence of books of account and payment vouchers. Therefore, the action of the AO for rejection of books of account was correct. Disallowance u/s 40(a)(ia) - Assessee is engaged in the business of transport contract - Takes transport contract and give contracts to truck operators for transporting the goods - The assessee did not file reply to the queries or documents asked for by the AO - The books of account and bills and vouchers were also not produced - AO rejected the books of account and estimated the net profit @ 8% of total receipts – Held that:- Once the books of account are rejected and profit is estimated, there is no reason to make further disallowance of any of the expenditure. Where profit is assessed on estimated basis by applying net profit rate, the expenses are deemed to be considered and no further deduction is to be allowed or disallowed. Appeal decides in favour of assessee
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