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2017 (6) TMI 184 - AT - Income TaxRejection of books of account - G.P. addition - Held that:- CIT-A has given a finding that the gross profit rate for assessment year 2008 - 09 was 17.47% while the gross profit in the assessment year 2009-10 is 17.43%. Hence there is a very negligible fall in the gross profit which doesn't warrant any adverse inference. Furthermore learned CIT-A has given elaborate finding on all the adverse findings of the assessing officer. Finding of the CIT-A are convincing and do not require any interference on our part. Furthermore even after rejecting the books of account the assessing officer has not found it suitable to make any addition of gross profit ratio. He has made an addition of lump sum amount of ₹ 50 lakh. Learned CIT-A is quite correct that when the gross profit ratio compares favourably with the past data no addition for gross profit is warranted, much less an ad hoc addition of ₹ 50 lakh. This addition has been solely based upon conjecture and surmises have rightly been found by the learned CIT- A to be not sustainable. Even thereafter in the above order learned CIT-A has sustained some addition /disallowance being expenditure of ₹ 2,33,214 under section 40 (a)(ia). No infirmity in order of learned CIT-A. - Decided against revenue
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