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2017 (8) TMI 655 - AT - Income TaxAssessment u/s 153A - Estimation of income from fish tanks - cultivation of the fish ponds - Estimation of water spread area and the bund area - The Fisheries Dept. estimated the income of the assessee @ ₹ 22,000/- per acre - assessee had offered ₹ 3,43,270/- as income from fish tanks - Held that:- As per the board circular the estimated income per acre was ₹ 4000/- on water spread area of 70% of the Fish pond for the year 1993-94 and the same cannot be said to be reasonable for the assessment year 2006-07, which is after 13 years. However, with regard to water spread area of 70% remained unchanged. The Ld. CIT(A) confirmed the estimation of income @ ₹ 22,000/- per acre inclusive of bunds and ₹ 13,300/- for 70% of water spread area since the assessee is not maintaining the books of accounts. The Ld. A.R did not place any evidence to disprove the estimation confirmed by the Ld. CIT(A). The revenue also did not place any evidence to show that the estimation of income @ ₹ 13,300/- is not reasonable. Therefore, in the absence of books of accounts we hold that ₹ 13,300/- per acre of water spread area appears to be reasonable and accordingly we uphold the order of the Ld. CIT(A). The estimation of water spread area and the bund area is in accordance with the circular issued by the CBDT. Accordingly, we uphold the order of the Ld. CIT(A) and the revenue’s appeal on this ground is dismissed. Additions made u/s 40A(3) - income estimated - Held that:- In this case, the assessing officer completed the assessment estimating the income @ ₹ 22,000/- per acre. The assessee has not maintained the books of accounts which fact was accepted by both the parties. The purchases were made by Shri Radha Krishna but there is no evidence to show that the expenditure was debited to the P&L account and claimed as a deduction in the hands of the assessee. Therefore we are of the view that the revenue has not placed sufficient evidence to prove that the expenditure was debited by the assessee and attract the disallowance u/s 40A(3) of I.T. Act. Further, the assessment in this case was completed by estimation and once the income is estimated the entire deductions or additions from section 30 to 43D of the Act deemed to have taken care of and no further disallowance or addition required to be made. See Dabros Industrial Company Private Limited Vs. CIT [1975 (7) TMI 21 - CALCUTTA High Court ] - Decided in favour of assessee.
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