Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 393 - HC - Income TaxRejection of books of accounts - whether the books have not been rejected under section 145 of the Act in the present case and in the absence of such rejection, the book result can not be substituted ? - Held that:- following an accepted method of accounting and the consistency in maintaining such accounts, does not ensure the correctness or completeness of the accounts. Even if, the method of accounting is correct, the accounts may be maintained in a manner, in which without creating any doubt over the method of maintaining of the accounts, the Assessing Officer, for good and sufficient reasons recorded by him, find that the computation is in such a manner, which does not accurately records the profits and gains. In the present case, the substantial increase in turnover from ₹ 4.58 to 33.63 crores, and the gross profits from ₹ 90 lakhs to 3.76 crores, did not justify the gradual fall in the gross profit rates. The reasons, given by the assessee-company explaining the reduction of gross profit rates, were not accepted by the Assessing Officer, and, thus, he made lump sum addition of ₹ 5 lakhs, which has been upheld by the Tribunal. We do not find any error of law in the computation of the income in a manner in the absence of a valid justification of reduction of gross profit rate, a marginal addition of ₹ 5 lakhs was made. - Decided in favour of revenue. Profits and gains u/s 80HH and 80IA of the Act - Whether the term 'profit and gains' used in section 80HH and section 80-I of the Income-tax Act, 1961, with reference to an eligible industrial undertaking have the same meaning as the term 'income' whereas the statute uses both the terms independently in different provisions of the Act ? - Held that:- Question No. 2 is covered by the judgment of Vijay Solvex Ltd. v. CIT (2014 (7) TMI 136 - RAJASTHAN HIGH COURT) following the judgment of the apex court in Motilal Pesticides (I.) P. Ltd. v. CIT [2000 (2) TMI 9 - SUPREME Court] wherein held that both sections 80HH and 80M fall in Chapter VI-A relating to deductions to be made in computing total income. It will be seen that the language of sections 80HH and 80M is the same
|