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2014 (1) TMI 1181 - AT - Income TaxRejection of books of accounts – Estimation of income - No incriminating evidence/material against Assessee – Held that:- Merely because in the opinion of the revenue authorities the income declared by the assessee was less as compared to his annual turnover, that itself cannot be a ground to reject the books of the accounts of the assessee which had been maintained regularly in the due course of business - When the CIT(A) had given a finding that there was no defect in the books of the accounts of the assessee and even no cogent or convincing incriminating material was found against the assessee during the course of search action, then under such circumstances, there was no reason for him to reject the books of the accounts of the assessee. There was no incriminating evidence available with the revenue - the Revenue merely rely on the weakness of the evidences produced by the assessee to make any adverse presumption or conclusion of his indulging in such activities without being there any direct or even circumstantial evidence on record against him - Merely assuming that the buyer and seller might have connived with each other, cannot itself be a ground to call upon the assessee to disprove such type of assumption which is even not based on any relevant incriminating evidence or fact on the file – there was no justification in the action of the CIT(A) in confirming the income on estimation basis at the rate of 0.5% of the turnover even having given a finding that there was no defect in the books of account of the assessee or any incriminating evidence found against the assessee – the order of the CIT(A) set aside and the AO directed to accept the books of accounts of the assessee and make the assessment accordingly – Decided against Revenue.
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