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2016 (3) TMI 1395 - AT - Income TaxEstimation of income - Rejection of books of accounts - net profit rate of 2% on the gross receipts - assessee did not produce all the vouchers for the expenses, nor any evidence was led to establish the payments made to the truck operators - HELD THAT:- All the expenses incurred by the Union are small expenses, for which, it is not possible to maintain vouchers. The payments were made through cheques, the details whereof were maintained and presented before the Taxing Authorities. The factum of the assessee having made the payments could not be doubted, since the respective accounts would be credited and debited accordingly. The cheque payments render any other evidence of the payments irrelevant and the Taxing Authorities have erred in rejecting the assessee’s books on this score also. Finding merit in the additional ground raised by the assessee, the same is accepted. It is held that the AO went wrong in rejecting the assessee’s books of account for non-maintenance of vouchers of expenses and absence of evidence regarding payments made to the truck operators. The ld. CIT(A) erred in confirming the action of the AO. To reiterate, no defects were pointed out by either of the Authorities below in the books of account maintained by the assessee. On the additional ground, the addition made by applying net profit rate on the gross receipts of the assessee is deleted. Accordingly, none of the original grounds raised survives for adjudication, having been rendered academic in nature. Decided in favour of assessee.
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