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2015 (3) TMI 59 - AT - Income TaxGP addition - CIT(A) deleted the addition - Held that:- CIT(A) has correctly concluded that AO was not justified to reject the books of accounts to estimate the profits of the assessee at the rate higher than that given in the books of account of the assessee. The GP rate as explained by the assessee was higher in the year under consideration compared to the immediately preceding year and hence any addition on this basis was uncalled for. As regards confirmations, the assessee was given inadequate time to file these. If the AO wanted to get the accounts of some of the parties confirmed, he could have given some more time to the assessee to file confirmed copies of accounts which could have changed his mind regarding his action to reject the books of account. Therefore, Ld. CIT(A) held that AO was erred in rejecting the books of account of the assessee and estimating profits of the assessee. Hence, he deleted the addition made by the AO. In view of the above, we find that Ld. CIT(A) has rightly deleted the addition ₹ 22,85,157/- which does not need any interference on our part, hence, the same is upheld. - Decided in favour of assessee.
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