Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1614 - AT - Income TaxRejection of books of account u/s. 145(3) - Addition on Account of low GP - CIT(A) observed that the assessee has explained the reason in fall of GP due to increasing in turnover from the previous year. Accordingly, the addition made by the AO on account of GP was also deleted - HELD THAT:- We find that ld.CIT(A) has given his finding that the books of account are duly maintained and presented before the AO during the course of assessment proceedings. Therefore, provisions of Section 145(3) are not applicable. Similarly, the fall in GP was explained as turnover during the year also had increased from Rs.14 crore to Rs.38 crore. Similarly, the A.Y. 2012-13, the GP dropped from 2.19% to 1.41% as the turnover increased from 10 crore to 41 crore. Further, the AO has not found any defects in the maintenance of the books of account, hence the GP of addition made by the AO was rightly deleted by the ld. CIT(A). In the light of above discussion of the finding of the ld. CIT(A), we find no infirmity in the order of the ld. CIT(A). Hence, the appeal of the Revenue is accordingly dismissed.
|