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2016 (8) TMI 992 - AT - Income TaxG.P. determination - rejection of books of accounts - Held that:- As in the given circumstances, where the assessee has shown better GP rate and no major defect has been pointed in the books of account, ld. Assessing Officer erred in rejecting books of account and therefore, no addition is sustainable by applying estimated GP rate @ 20%. We find no reason to interfere with the finding with regard to the issue of deleting the addition on account of GP rate. However, with regard to the addition of ₹ 1,54,937/- on account of 20% disallowance on unverifiable purchases of ₹ 7,74,687/- we find that all these purchases are relating to perishable items namely, milk, fruits, vegetables, curd etc. and cooking gas which are to be sought after by the assessee from different suppliers and there is practical difficulty of gathering supporting documents and, therefore, in the given circumstances when the assessee has shown better GP rate and financial statements are audited u/s 44AB of the Act and the disallowance made by lower authorities is fairly on an estimate basis, we find no reason for such disallowance and, therefore, we delete the same. Addition made u/s 69 for unexplained investment - Held that:- As the assessee’s financial statements have been accepted by the Revenue for Asst. Year 2007- 08 and addition made during the year under appeal emanates out of the opening balance of the capital account only and there is no evidence of any unrecorded investment in the case of assessee and, therefore, no addition was called for u/s 69 Credit for TDS - reopening of assessment - Held that:- From going through the above provisions, we observe that when the assessee receives notice u/s 148 and is required to file return of income then as per the provisions of section 148 such return is treated at par as if same were required to be furnished u/s 139. Further when we move to the Rule 41 sub-rule(2) provides that the claim of TDS shall be accompanied by return in the form prescribed u/s 139 of the Act. Moving further when we go through the Rule 37BA(4) we find that credit for tax deducted at source and paid to the account of Central Government shall be granted on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority and the information provided in the return of income. Now when we link up the provisions of section 148 of the Act with Rule 41(2) and Rule 37BA(4) of IT Rules, we find that assessee filed return of income in the prescribed form in compliance with notice u/s 148 of the Act and provided all necessary information relating to TDS to the assessing authority and thereby satisfying all the conditions which are required for claiming refund. We are, therefore, of the view that in the given facts of the case when assessee’s revenue has not been questioned and all necessary information in the form of return of income and TDS certificate were before the ld. Assessing Officer then the TDS credit ought to have been allowed.
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