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2014 (1) TMI 1880 - AT - Income TaxRejection of books of accounts u/s 145 - NP estimation - HELD THAT:- Nothing new is brought on record, therefore we confirm the view taken by the CIT(A) for rejection of the books of accounts u/s 145(3) of the Act. In such circumstances, when the books of accounts are rejected the only way to worked out the income is the estimation by considering the past history of the assessee or any comparable case having similar facts. In the instant case, the profit shown by the assessee at 5.38% is higher than the net profit rate of 5% approved by the ITAT in the preceding assessment years but, at the same time, the AO pointed out certain shortcomings in the maintenance of books of accounts etc. Therefore, certain addition was required to take care of possible leakage of income/profit of the assessee. In our opinion, the addition sustained by the Ld. CIT(A) at ₹ 10 Lac is on higher side. We, therefore, to meet the ends of justice and considering the peculiar facts of this case, deem it appropriate to sustain the addition of ₹ 5 Lac which will take care of possible leakage of income/profit of the assessee (if any) on account of shortcomings pointed out by the AO. - Decided partly in favour of assessee
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