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2018 (1) TMI 512 - AT - Income TaxDisallowance made U/s 40(a)(ia) - AO has rejected the books of account of the assessee and estimated the income of the assessee by applying N.P. rate - Held that:- Once the n.p. rate is estimated, the AO cannot based this disallowance on the same books of accounts for the purpose of disallowance by invoking provisions of section 40(a)(ia) of the Act or general disallowance u/s 37 of the Act. The estimation made by the AO of net profit will take care of every addition related to business income or business receipts and no further disallowance can be made. See M/s Rakesh Construction co. Versus The ACIT, Circle-7, Jaipur [2016 (9) TMI 1404 - ITAT JAIPUR] Addition on account of service tax U/s 43B - Held that:- As the respondent assessee had not claimed any deduction on account of the service tax payable in order to determine its taxable income. In the above view, there can be no occasion to invoke Section 43B of the Act. See CIT Vs Knight Frank (India) Pvt. Ltd. [2016 (8) TMI 1096 - BOMBAY HIGH COURT]
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