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2012 (12) TMI 604 - AT - Income TaxEstimation of gross profit - rejection of books of accounts - held that:- Undisputedly, if the books are duly audited and if they are produced before the AO, the burden lies upon the Revenue to show that the books are defective or incomplete, in order to estimate reasonable income from turnover. However, in the instant case the assessee has not furnished relevant details and nowhere in the assessment order it is indicated that the assessee has furnished the books of account. - the contention of the assessee that no addition can be made in the event of not giving a specific finding with regard to the defect in the nature of books, deserves to be rejected. - Decided against the assessee. Rate of GP - Since itemised details were not furnished the learned CIT(A), based on the available material, accepted the GP sheet as prepared by the assessee and while arriving at the GP ratio at 22.22% the gross loss works out to Rs.2.09 crores. It is well settled that while estimating the income it is difficult to maintain exactitude. So long as the estimate is reasonable, based on the facts available on record, the appellate authorities should not interfere with the estimate made by the lower authorities. In the instant case no fresh material was furnished before us to indicate that even the CIT(A) has committed an error in restricting the GP ratio (loss) to 22.22%. - Decided against the assessee.
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