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2014 (6) TMI 8 - AT - Income TaxRejection of books of accounts - Nature of assessee – Professional or contractor – Held that:- Income of the assessee has been estimated in a very arbitrary manner - There is nothing placed on record to justify the estimate of income at 60% of the gross receipts of the assessee - when and if estimate has to be arrived at then the estimate necessarily has to be an honest estimate which may be based either on past accepted history of the assessee or on a comparison made with identically situated persons engaged in similar activity - In the absence of relying on relevant material the action of department is open to criticism on the count of being arbitrary and capricious – for the rejection of books of accounts CIT(A) held that the vouchers are self-vouched as such not reliable as opposed to the AO’s finding that supporting vouchers have not been produced - In the face of the contradiction in the orders available on record and considering the rival stands, the matter is required to be remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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