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2015 (9) TMI 595 - AT - Income TaxRejection of books of account - trading addition - Held that:- The assessee's books have been rejected year after year and estimate has varied in each year. The ld. Counsel for the assessee has requested for addition on lump sum basis which in our view is not a scientific method and cannot be adopted in assessee's case. Thus looking at the repeated failure of not maintaining proper books, despite a voluminous business, nature of the business and the transactions, assessee cannot be allowed to escape the situation created by his own default and demand a lump sum addition. Assessee cannot claim advantage of lesser addition by getting the books rejected year after year and avoiding the maintenance of proper books of accounts. In the entirety of the facts and circumstances of the case, we take a lenient view and direct the AO to adopt estimate of 2.5% (against 4% adopted) of net profit rate on transportation receipts, which will meet the ends of justice. The AO is directed to calculate the taxable income accordingly. - Decided partly in favour of assessee.
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