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2017 (6) TMI 598 - AT - Income TaxEstimating the profit @ 1.5% of the total turnover - best judgment assessment - Held that - Admittedly the assessee failed to produce the books of account at the time of assessment. It is also a fact to determine the actual income the books of account play the crucial role. In the absence of books of account we find that Ld. CIT(A) had to resort to accept to determine the income to the best of his judgment. However the income in the case of best judgment assessment should be worked out reasonable and scientific manner. The income on estimated basis should be. 80% to the gross turnover of the assessee. It is because the amount of profit shown by assessee in the earlier years cannot be set aside while determining the income on the basis of best judgment. Therefore after considering the trend of the assessee s business we direct the AO to re-compute the profit @. 80% of the turnover. This ground of assessee s appeal is partly allowed. Addition on account of difference between the creditors shown by assessee vis- -vis shown by the respective parties - Held that - Though the assessee has filed the re-conciliation the difference by stating that certain bills were raised at the fag-end of the year which was accounted for in the subsequent year. In such situation if the differences are added to the total income of assessee then this will lead to double taxation in the hands of assessee. Therefore we find that the impugned order passed by Ld. CIT(A) by estimating the income in the aforesaid facts and circumstances is reasonable enough to determine the actual tax liability. Thus we do not find any infirmity in the order of Ld. CIT(A). Thus appeal of the Revenue is dismissed.
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