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2013 (9) TMI 898 - HC - Income TaxRejection of books of accounts u/s 145(3) of the Income Tax Act – Held that:- Reliance has been placed upon the judgment of Hon’ble Supreme Court in the case of Keshav Mills Ltd v. CIT [1953 (1) TMI 5 - SUPREME Court] and CIT vs. A. Krishnaswamy Mudaliar [1964 (4) TMI 7 - SUPREME Court], wherein it has been held that measurement of periodic income is, to some extent, a matter of estimation, based on certain acceptable principle of accounting. The computation of business income may differ depending upon the method of accounting employed. It is not the legal position that on identical facts, the same amount of income should be assessable in the cases of all the assessees - Adoption of the gross profit of account would not depend only upon the net profit. In the present case, from the chart of the gross profit, it is found that the gross profit was increasing progressively from the years 2007-08 to 2009-2010 – Decided against the Revenue.
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