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2017 (2) TMI 683 - HC - Income TaxAddition u/s 69 - difference between the cost of construction as estimated by the DVO and as declared by the assessee - Held that:- The reference made to the DVO by the authority concerned is clearly bad and illegal in this case as the books of account had been rejected. - Decided in favour of the assessee . Addition towards extra profit by adopting the gross profit rate of 30.18% instead of 35.66% as disclosed by the assessee after rejecting the account books - Held that:- Full particulars and details were never supplied by the assessee. The assessing officer, therefore, made an addition. The CIT and Tribunal have not considered these aspects at all, who have ignored them and have, therefore, deleted the addition. As referred by revenue case of Izhar International vs. Deputy Commissioner of Income-tax (2013 (7) TMI 810 - ALLAHABAD HIGH COURT) and Shri Venkteshwar Sugar Mills vs. Commissioner of Income-tax (Appeals) (2012 (1) TMI 81 - ALLAHABAD HIGH COURT) to substantiate his point that where the books of account were not properly maintained and the vouchers pertaining to the consumable items were not available for verification, then there is no option before the assessing officer except to make estimation on the basis of best judgment and also it would be open to him to make addition if amounts are so found against the assessee. - Decided in favour of the department.
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