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2016 (5) TMI 368 - AT - Income TaxRejection of books of accounts - estimation of net profit rate - Held that:- The assessee has not maintained proper records and books of account. The assessee's non-explanation of huge expenses around ₹ 1.00 crore and wayside expenses of ₹ 92,01,739/- cannot be taken lightly as they are incurred in cash. It is the burden on the assessee to demonstrate that the expenses claimed by him are corroborated and reasons for non-maintenance of records are duly explained. It has not been demonstrated by the assessee that distinguishing features as pointed out by the ld. CIT(A) in respect of earlier years and current year are unjustified. Consequently, the nature of inference leads to believe that in this year the severity and nature of defects in the books of account are different than earlier years. We thus find merit in the contentions of the ld. DR that principles of res judicata do not apply to ITAT proceedings and principles of consistency are also not applicable as facts are distinguishable. It is settled law that estimate based on best judgment assessment due to rejection of books of accounts, should not be ordinarily interfered by appellate authorities, unless there are demonstratively cogent reasons to do so. In this case, the assessee has failed to point out that order of the ld. CIT(A) as to estimation of net profit rate is contrary or excessive. In view thereof, we see no infirmity in the order of the ld. CIT(A) which is upheld. - Decided against assessee
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