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2016 (7) TMI 26 - AT - Income TaxEstimation of net profits - rejection of books of account - Held that:- Assessing Officer without pointing out any defect in sales and purchases, opening and closing stock rejected the books of account by just holding that assessee had not booked the expenditure whereas the learned CIT(A) has made a finding of fact that the expenditure was duly booked in the books of account and was reflected in the P&L accounts and payments thereof were made through bank account and in view of the above facts the rejection of books of account was not justified specially keeping in view the fact that Assessing Officer did not find any deficiency in the sales, purchases, opening stocks and closing stock of the assessee. The contention of the Assessing Officer that rent expenditure of 17,13,388/- was incurred out of unexplained sources is also not correct as learned CIT(A) in this respect has made a clear finding of fact and therefore, the basis which was taken by Assessing Officer for rejection of books of account is also not valid. The Assessing Officer without comparing earlier year results of the assessee applied 6% net profit rate without any basis and therefore, action of learned CIT(A) in deleting such addition is justified. Similarly, the assessee had declared the income on account of Duty drawback etc. separately in P&L account and therefore, the addition was not justified and learned CIT(A) has rightly deleted the same.- Decided in favour of assessee Addition on rent payment - addition u/s 69C - Held that:- The appellants books of account are audited. It was stated that the books of accounts along with bank account, vouchers were produced with supporting evidence during the course of hearing to prove that these expenditure are duly recorded in the books. The payments were vouched for. The appellant has placed the complete detail of payments. We find that Assessing Officer made the addition without any basis and which learned CIT(A) had rightly deleted.- Decided in favour of assessee
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