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2012 (10) TMI 352 - ITAT CHENNAIRejection of Books of accounts – Calculate profit on the basis of GP rate, of other similar line of business @ 8.12% - AO has observed that the assessee has not maintained proper books of accounts – Held that:- As the CIT(A) adopted a G.P. rate of 5%, being the average of 2.57% + 7.52% for the GP rate of earlier years. No infirmity in the order passed by the CIT(A). Issue decides in against of revenue Addition on account of cash credit u/s 68 – Assessee received security deposit from another party against supplying the fabric to two parties – AO made addition on the basis of Only his objection is that there is no entry in the books of accounts of such another person in respect of two parties – Held that:- When the assessee received payments from a limited company and the payment also received through a bank, i.e. cheque payment and also filed a confirmation from the company, in our opinion the assessee has discharged onus cast upon him. Issue decides in favour of assessee Addition on account of difference in books of accounts – Assessee first produce provisional books - Subsequently audited books of accounts were furnished before AO after rectify the discrepancy – AO’s ground was that only after these discrepancies are pointed out and subsequent changes were made – Held that:-The entire explanation of the assessee has held that section 68 can be invoked only if some amount of money credited and there is no explanation or the explanation of the assessee is false. No amount was credited to the account of the assessee. The assessee submitted audited books of account subsequent to the mistake pointed out by the AO. Therefore invoking of section 68 by the AO is not correct. Issue decides against revenue
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