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2016 (8) TMI 227 - HC - Income TaxAddition on processing profit and loss account - rejection of books of accounts - Held that:- It is a matter of fact that the Assessing Officer rejected the books of accounts of the assessee but, has made additions by relying upon the same books of accounts. The facts in these cases are similar to the facts narrated in CITII v. Dhiraj R. Rungta’s case (2014 (4) TMI 711 - GUJARAT HIGH COURT ). When the Assessing Officer found mistakes in the books of accounts of the assessee on verification and consequently, rejected the same, then it ought not to have made additions by relying upon the same books of accounts. Instead, the Assessing Officer ought to have made the best judgment assessment on the basis of the history and nature of business and the net profit rate as shown by the assessee in the previous year. In view of the same, the matters are required to be reconsidered by the Assessing Officer keeping in mind the principle rendered in the aforesaid decisions.
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