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2015 (1) TMI 879 - DELHI HIGH COURTRejection of books of accounts - addition of ₹ 39,15,783/- made by the AO applying the 20% of the gross profit rate on the total sale, after rejection of books of accounts - CIT(A) deleted the addition - Held that:- It must be observed here that after books of accounts had been completed, duly audited and submitted, rejection thereof by the Assessing Officer was indeed arbitrary. It is not a case where the Assessing Officer did not have the benefit of the audit report. The record reveals that the audit report had been issued on 17.02.2007 and, thus, was very much available to the Assessing Officer when he passed the order on 31.12.2008. In these circumstances, the application of 20% of the sales as gross profit, as against the claim of the assessee founded on the return for assessment year 2002-2003 (14.49%), was wholly unjustified since the Assessing Officer had not given any basis whatsoever for the same. There was no comparative data available with the Assessing Officer for inferring the gross profit at such higher rate. Thus, find no error or impropriety in the view taken by the two appellate authorities below in the impugned orders. - Decided against revenue.
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