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2019 (2) TMI 1811 - AT - Income TaxRejection of books of accounts - NP addition - HELD THAT:- This is not a fit / case for rejection of books of account and estimation of profits as the search has not thrown up any specific discrepancies in the accounts regularly maintained by the appellant. A.O. has rejected the books of account and estimated the profits of the business only based upon NP ratio without confronting the same to the appellant. This is completely in violation of principles of natural justice. A.O. has adopted a very simplistic approach in completing the assessment. Such action of the A.O. cannot be sustained. We agree with the finding of the Ld. CIT(A) that no ground survives for rejection of books and estimation of income. The result of remand proceedings support the stand of the assessee. The assessee group have also honoured there declaration of surrender of income made during search & seizure proceedings. As is evident from the detailed letter dated 28.02.2014, submitted before the AO. The group had surrendered ₹ 10 crore during the search. Therefore, the Ld. CIT(A) has rightly deleted the addition and allowed the appeal of the assessee, which does not need any interference on our part, therefore, we uphold the action of the Ld. CIT(A) on the issue in dispute and reject the ground raised by the Revenue.
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