Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 379 - AT - Income TaxRejection of books of accounts - estimation of net profit of 20% on total stock put for sale - Held that:- We are of the view that the net profit estimated by the A.O. by relying upon the decision of Hon’ble A.P. High Court in the case of CIT Vs. R. Narayana Rao(2012 (6) TMI 402 - Andhra Pradesh High Court ), which was rendered under different facts is quite high. On the other hand, the assessee relied upon the decision of in the case of T. Appalaswamy Vs. ACIT [2014 (3) TMI 1056 - ITAT VISAKHAPATNAM] wherein the coordinate bench under similar circumstances estimated the net profit of 5% on total purchases net of all deductions. No contrary decision is placed on record by the revenue to take any other view of the matter than the view so taken by the coordinate bench. Therefore, we direct the A.O. to estimate the net profit of 5% on total purchases net of all deductions. Ordered accordingly.
|