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2018 (4) TMI 983 - AT - Income TaxEstimation of sales and net profit - filing return u/s 44AD - non maintenance of books of accounts - Held that:- Assessee filed its return of income under section 44AD and therefore, is not required to maintain any books of accounts qua his proprietary business done by M/s. Riddhi Sidhi Textiles as the total sales were less than ₹ 18,61,745/-. The assessee also filed the bank statements before the authorities below and the authorities below have failed to bring anything on record which proved that the assessee has actually made the sales of ₹ 86,71,625/- though the profit in the immediately preceding year was much higher. AO also failed to rebut the contentions of the assessee that the said stock was duly showed in the subsequent years and also the sales thereof. When no books of accounts are maintained by the assessee and return is filed under section 44AD of the Act, we are not in a position to sustain the order of Ld. CIT(A) estimating the sales which has no basis at all. Moreover, the AO has also not brought on record any evidences that assessee’s income was more than 8% during the year. - Decided against revenue.
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