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2015 (11) TMI 297 - AT - Income TaxRejection of book results under section 145 - estimating the income at 5 percent of gross receipts - Held that:- Stock register may be important for manufacturing industries but when it comes to the case of contractor, it may not be important as the entire material purchased, might have been consumed and charged to profit and loss accountant and the closing stock working progress has been shown by the assessee. In the circumstances, in our opinion, the non-maintenance of stock register alone cannot enable the Assessing Officer to reject the books of account. The Hon'ble Gujarat High Court in the case of CIT Vs. Vikram Plastic [1998 (8) TMI 43 - GUJARAT High Court] held that no specific discrepancies or defects in the books of account of the assessee has been pointed out, nor any material was brought to establish that the purchases and expenses had been inflated or the sales had been suppressed and in the absence of any such material or finding given, there was no justification in invoking the provisions of Section 145(2) of the Act. Thus in the present case Assessing Officer was not justified in rejecting the book results without pointing any specific defects in the books of account. - Decided in favour of assessee. Taxing of interest received due to late payment of amount due to it - business income or income from other sources - Held that:- The interest received by the assessee on account of delay in the payment of money due to it cannot be taxed separately but only as an income from business. Accordingly, this ground of appeal filed by the assessee is allowed in its favour. See CIT Vs. Govinda Choudhury & Sons [1992 (4) TMI 8 - SUPREME Court] - Decided in favour of assessee.
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