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2018 (4) TMI 1632 - AT - Income TaxRejection of books of account - estimating the net profit rate - non-maintenance of day to day stock register - Assessing officer disputed the expenditure claimed against the contract receipts including expenses on freight and carriage - Held that:- Punjab & Haryana High Court in the case of ‘Pandit Bros. Vs. CIT’ [1954 (3) TMI 70 - PUNJAB HIGH COURT] have been unanimous to hold that where owing to the nature of business of the assessee it is not possible for the assessee to maintain day to day to day stock register, the books of account should not be rejected merely on this count. So far as the non-furnishing of the measurement sheets is concerned, the assessee had already explained before AO that it was not in practice of making the measurement sheets as the said work was used to be done by the quality manager of the department of the government before making the payment. The assessee finally had completed the projects. So far as the observation of the Assessing officer that certain vouchers were handmade and certain receipts were unsigned, as observed, since the assessee is involved in the road construction business for which it had to make payment to various labourers and other persons, who do not possess any printed vouchers, taking into the consideration the aforesaid nature of business, even if some vouchers relating to freight, repairs etc. were handmade, that also, in our view, is not sufficient ground to reject the books of account. Assessing officer was not justified in rejecting the books of account only for the aforesaid reasons in the absence of any other discrepancy. The action of the Assessing officer for rejecting the books of account because of the aforesaid reasons was not justified. Accordingly, the matter is restored to the file of the Assessing officer to go through the accounts of the assessee viz a viz the computation of income and pass a fresh assessment order. - Decided in favour of assessee.
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