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2013 (12) TMI 601 - ANDHRA PRADESH HIGH COURTRejection of books of account - Held that:- From sub-section (3) of Section 145 of the Act it can be concluded that it is the absolute subjective satisfaction of the Assessing Officer about the correctness or completeness of the accounts of the assessee - The method of accounting is not under consideration - If there is an increase in the cost/purchase price, there will be a corresponding rise in the price of sale - The assessee could not justify its claim that there is increase in the cost of inputs with there being no corresponding rise in the price of sale - There is no significant increase in the expenses viz. personnel cost, administrative & selling expenses, interest & finance charges, etc. considering the increase in turnover reported from year to year - The increase in output costs is almost insignificant compared to the increase in input costs - The steep decline in the rate of net profit, the assessee cannot, therefore, attribute to the increase in input costs - The estimation of profit by the AO is reasonable - The order of rejection is not required to be expressed - Decided against assessee.
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