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2015 (8) TMI 459 - AT - Income TaxAddition made on account of low Gross profit - Estimated GP rate to determine Net profit - rejection of books of accounts - Held that:- We find that the assessee AO found that the books of account were not reliable. It is a fact that payment of more than 3 Crores were made in cash that details of nature of purchases quantity of purchases or name of suppliers were not supplied before the AO or FAA mentioned in the ledger, that assessee could not produce any vouchers in support of the expenses he had claimed. It is not the case that the AO had made GP addition without any basis. He had actually compared the GP of the bamboo supplier who were from the same locality and had similar turn over. We find that in the earlier preceding year the assessee had shown GP of more than 9%. Thus, his approach is very logical. It is also a fact that the assessee had not produced the creditors and the cash book and the bank account details were not matching. Considering the non reliability of the books of account, expenses and purchases, we are of the opinion that the estimate the income of made by the AO and confirmed by the FAA was is reasonable and justifiable. With regard to the higher percentage of the GP, we are of the opinion that in the interest of justice it should be restricted to 6.5% in place of 7.37%. We find that the cases relied upon by the assessee are not applicable to the facts of the case, as the business of the assessee is different and the facts are not similar. In our opinion, same are of no help. - Decided partly in favour of assessee.
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