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2016 (10) TMI 922 - ITAT AHMEDABADRejection of the books - claim of expenditure on the basis of self-made vouchers - receipt of on-money - Held that:- When the AO has verified the primary details showing the incurrence of expenditure, then the assessee failed to submit those details and failed to reconcile the expenditure. The moment the assessee has accepted receipt of on-money of more than ₹ 2.13 crors then, factually it would have been inferred by the AO that expenditure might have been incurred out of books. He was required to examine the details of expenditure. In this exercise, he found that the details relating to the expenditure were not maintained methodologically and scientifically. Therefore, he made reference about these labour register, other details and other expenditure. The CIT(A) instead of pointing out any incidence as to how this expenditure are to be termed as rightly debited by the assessee, simply observed that books of accounts cannot be rejected on ground that labour payments made by the assessee on self-made vouchers. This is an inference of fact in a particular situation. It is not a ratio of law. The ld.CIT(A) miserably failed to appreciate the facts in right perspective. Therefore, on detailed analysis of the facts considered by the AO, and the manner in which ld.CIT(A) has appreciated them in the finding recorded in para.43, we are of the view that the ld.CIT(A) has failed to appreciate the facts in right perspective and erred in upholding the book results of the assessee. Ground no.1 is allowed and rejection of the books at the end of the AO is restored. Quantification of the GP - Held that:- Exercise made by the AO was not correct. The ld.CIT(A) has rightly pointed out actual difference of fall in the GP should be ₹ 69,90,011/-, and this is the reason, the Revenue has also taken this amount in its ground of appeal.
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