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2018 (7) TMI 2137 - AT - Income TaxEstimation of income - Non rejection of books of accounts - CIT (A) is not justified in directing the A.O to estimate the gross profit at 12.61% as against 20% adopted by the learned A. O - appellant has maintained the books of accounts which are audited u/s.44AB - HELD THAT:- We find that the High Courts in the matter of CIT v. Anil Kumar & Co. [2016 (3) TMI 184 - KARNATAKA HIGH COURT], CIT v. Symphony Comfort System Ltd [2013 (10) TMI 258 - GUJARAT HIGH COURT] and PCIT v. Marg Ltd [2017 (7) TMI 823 - MADRAS HIGH COURT] have held that no addition can be made on estimated basis without rejecting books of account of assessee. AO estimated the income based on the information obtained from KSBCL authorities disclosing the percentage of profit on sale fixed by the Karnataka government. It is not the case of the AO that the books were not properly maintained. Not even a word has been whispered by the AO that the books were not in accordance with the method of accounting, or were incorrect / incomplete. In our view, the laws commands us to set aside the assessment made on the basis of estimation, if the AO made the estimation without rejecting the books of account. - Decided in favour of assessee.
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