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2016 (4) TMI 698 - AT - Income TaxRejection of books of accounts - estimation of profit - Held that:- The assessee's plea that books of account should not have been rejected u/s 145(3) which is devoid of any merit as nowhere it has been claimed that expenses vouchers were produced by the assessee before any forum. Thus the deficiency remains un-controvered by the assessee, consequently the books of account of the assessee are rightly rejected. Apropos assessee's plea that having rejected the books of account the AO can only estimate the gross profit is also devoid of any merit. After rejection of books of account the law provides for best judgment assessment by the AO. Therefore, the assessee cannot dictate the method or way claiming best judgment assessment. The assessee's plea that he being in the business of civil construction, Section 44AD should be applied to him is baseless inasmuch as the law itself provides that provision will not be applicable to assessee having receipt above ₹ 40 lacs. The assessee's case is within the purview of Section 44AD of the Act by operation of law itself. The assessee's deliberate act of maintaining audited books of account and deliberately not producing expenditure vouchers cannot be taken lightly. No explanation has been offered by the assessee as to why expenditure vouchers could not be produced by him. Thus the act of defiance demonstrate reckless attitude of the assessee which cannot be accepted. The case laws cited by the assessee are altogether on different facts as none of them involves deliberate non furnishing of expenditure vouchers. The assessee's facts being deliberately non-production of expenditure vouchers does not fit in the four corners of the case laws cited by the assessee. - Decided against assessee
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