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2018 (10) TMI 1219 - AT - Income TaxEstimation of income - rejection of books of accounts - assessee failure to produce the books of account/bills etc. - Genuineness of expenditure - loading/ unloading and hire charges for vehicle - CIT-A upholding the estimation of Income @5% of gross turnover - Held that:- Assessee has made transport business to the extent of ₹ 20.34 crores. He maintains or arranges lorry from others for the purpose of transport. The average hire charges per lorry ranges from ₹ 3,000/- to ₹ 10,000/- according to the distance/load. The assessee maintains books on gross daily receipts and payments. He maintains separate register for collection of advance and final collection with the full details of trips based on each lorry. This traceable with the lorry registration number. The particular trip sheet contains the advance collection, hamali charges for loading and unloading charges. These are traceable on day-wise/trip-wise. These micro information are not available in the regular receipts & payment register maintained by the assessee. In our view, each industry has its own method of accounting. AO has to understand the system of the particular industry. In this case, the ld. CIT(A) has verified the system himself and found to be proper. We are in agreement with the findings of ld. CIT(A). Addition u/s 68 - Held that:- We notice that assessee maintains cash book for all these ventures and wherever there is requirement in all three ventures, he utilizes the funds. In that process, in the hands of the assessee, he controls the same in his capital account. AO has accumulated the whole year transactions and came to the conclusion that there is huge capital introduced. In the day to day activities, the requirement of capital is across the venture/business may not be to that extent. It is the maximum utilization of available funds as per the method suitable to the assessee. AO cannot determine how the cash should be utilized in the business. Ld. CIT(A) has already verified the method of accounting and he has satisfied with the method. AO has not even tried to understand the method followed by the assessee and we are in agreement with the findings of ld. CIT(A). Accordingly, we uphold the action of the CIT(A) in deleting the addition Revenue appeal dismissed
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