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2018 (3) TMI 948 - AT - Income TaxRejection of books of accounts - profit estimation - Held that:- There is no dispute with regard to the rejection of books of accounts. There is no change in the facts and circumstances as compared to last assessment year as observed from the assessment order of earlier year(s). However, we note that AO has not elaborated the reasons for adopting the higher profit as compare to the earlier year(s). AO estimated the profit @ 6.50% of the gross turnover which was reduced by the ld. CIT(A) to 6% of the gross turnover. It was observed that the profit of the assessee was estimated by the AO @5.77% of the gross turnover in the immediate preceding AY 2011-12 which was not challenged by the assessee before the ld. CIT(A). As all other facts of the assessee are same as of the immediate preceding year, therefore in our considered opinion, it would serve the end of justice to the assessee if the estimate is scaled down to the profit @ 5.77% of the gross turnover. The grievance of the assessee is, as such, partly allowed.
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