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2015 (9) TMI 110 - ITAT AMRITSARRejection of books of accounts - Held that:- There is no dispute to the fact that the assessee is not maintaining day to day consumption register, stock register and any details for opening stock and closing stock. Therefore, the ld. CIT(A) has rightly upheld the rejection of books of account. Moreover, against the rejection of books of account, there is no ground raised by the assessee before us, though the ld. CIT(A) has rightly rejected the books of account Estimation of food sales - Held that:- We have seen earlier that in the assessment order for the A.Y. 2008-09 the AO has applied the ratio of 1:3 to estimate the food sales of the assessee after rejecting the book results. I do not find any irregularity in the decision arrived at by the AO on this account. The reason for the rejection of the book results are the non-maintenance of day to day consumption register and stock register and the nonproduction of the details of the opening and closing stock. For these very reason the rejection of book results for the A.Y. 2004-05 and 2005-06 have been upheld by the CIT(A) and the ITAT. Even if it is not possible to maintain a day to day stock register, in the absence of the particulars of the valuation of the stock at the beginning and at the end of the relevant accounting period, the income of the accounting period cannot be determined. Hence, the addition of ₹ 24,06,296/- on account of suppression of food sales is upheld. The Ld. counsel for the assessee relied upon the assessment made by the AO for the A.Y. 2010-2011 where wastage of 15% has been allowed. In this regard, first of all, it is not a past practice of the assessee. Normally past trend is followed in the case of present assessment. Moreover, every year is an independent year and the decision of the AO in the following year cannot be a guide while deciding the appeal in the present case. Therefore, the said submissions made by the assessee is rejected and the ld. CIT(A) as mentioned hereinabove has rightly upheld the findings of the A.O. in confirmation of addition of ₹ 24,06,296/-. Lawn charges or proceeds of banquets - addition to income - estimation of number of functions - CIT(A) applied the ratio of 1:3 as against the ratio of 1:5 applied by the AO - Held that:- The number of functions claimed by the assessee is only 24 during relevant previous year which appears to be very low considering the past history of the case and excellent location of the appellant’s hotel. Taking into account the general fall in number of function over the years, the number of function during the relevant previous year is estimated at 40 instead of 50 estimated by the AO. The estimate of receipts of ₹ 55,000/- per function taken by the AO is held to be reasonable since this is only a 10% increase over the rate estimated in AY 2002-03. The assessee will consequently get relief of ₹ 5,50,000/- out of the addition of ₹ 15,72,472/- made by the AO on this account - no infirmity in the above order of the ld. CIT(A) which is a well reasoned order. As regards the findings of AO in the subsequent year where the AO has allowed 15% wastage, as argued by Ld. AR, the same cannot be applied in the present facts and circumstances for the reasons, each year is independent year in Income Tax proceedings and the following year having its own facts and circumstances and decision of AO for following year cannot be a guide on the Tribunal as in the present case, which has its own circumstances. - Decided against assessee.
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