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2018 (3) TMI 884 - AT - Income TaxProfit estimation - rejection of books of accounts - assessee is in the business of construction of sale of apartments - Held that:- We find that ld. CIT(A) for the year under consideration, has considered the profit of earlier year and scaled down the estimation of profit from 12.5% to 9%. We find no reason to interfere in the order passed by the ld. CIT(A). Thus, this ground field by the Revenue is dismissed. Disallowance of interest - Non deduction of tds u/s 194A - Whether once income of the assessee is estimated, no separate addition can be made in respect of interest paid by the assessee? - Held that:- We find that the assessee has not claimed any expenditure in the profit & loss account, therefore, the disallowance made by the Assessing Officer under section 40(a)(ia) is not warranted. We find that ld. CIT(A) has rightly directed the Assessing Officer to delete the addition. Also no further disallowance under section 40(a)(ia) and 40A(3) can be made on the basis of the books of accounts in spite of mandatory provision and non-obstante clause contained therein, merely because the income was determined on estimate basis, by rejecting such books of accounts. See Indwell Constructions Versus CIT [1998 (3) TMI 121 - ANDHRA PRADESH High Court] - Decided in favour of assessee
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