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2014 (7) TMI 769 - HC - Income TaxValidity of order - Rejection of books of account – Held htat:- The business operation of the assessee is the same for the AY as compared with the previous AYs - profits estimated in the previous years is a safe guide for estimation of the profits for the AY for estimating the turnover since the business activity conducted by the assessee remains the same - the average gross profit rates comes to 9.62% - the average gross profit works out to 10.42% - the estimation of the gross profit at 10% by the AO was perfectly correct, which requires no interference - estimation of gross profits is a question of fact which normally should not be interfered unless the estimation is perverse and ill-logical and has no reasonable nexus with the business activity vis-a-vis the turnover of the assessee. The Tribunal is a last fact finding authority is required to give its own reason howsoever brief it may be - the reasoning given by the Tribunal though in brief was not cryptic, which could result in non-application of mind - the Tribunal applied its mind and thereafter, passed the order after considering the submissions of the parties – the Tribunal was justified in not remanding the matter - reasoning adopted by the AO was perfectly justified and in accordance with the average estimation of the gross profits after comparing it with the gross profit rates with the previous years - Decided against Assessee.
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