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2017 (2) TMI 1379 - AT - Income TaxRejection of books of accounts - disallowance u/s. 40A(2)(b) - addition on account of low Gross Profit - payments for purchase of bullion and gold ornaments from its sister concern - Held that:- The defects pointed by the Assessing Officer are trivial and some are even non-existent. On account of such inconsequential defects the audited books of the assessee cannot be rejected. Disallowance u/s. 40A(2)(b) - Held that:- the method of averaging price on yearly basis followed by the authorities below is erroneous. The authorities below have failed to take into consideration the instances where the assessee has made payment to its sister concerns at a price less than the market price - there are several instances where the assessee has made payment for purchase of gold jewellery at a price less than the market rate. Under such circumstances, no addition u/s. 40A(2)(b) is warranted. Decided in favor of assessee.
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