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2018 (10) TMI 1447 - AT - Income TaxEstimation of net profit @ 5% - rejection of books of accounts - AO has rejected the books of accounts on the ground that he was not satisfied about the correctness or completeness of the accounts - Held that:- In our opinion, for rejection of the books of accounts on the ground of non-satisfaction of correctness or completeness, it is essential for the Assessing Officer to point out the specific defects. Merely increase in expenses, cannot be ground for rejection of books of accounts unless the assessee failed to explain or justify increase in expenses. CIT(A) has made detailed verification of invoices and vouchers in respect of the expenses claimed by the Assessing Officers as excessive. The Ld. DR could not controvert the finding of the CIT(A) on justification of increase in expenses in question. No error in the action of the Ld. CIT(A) in cancelling the rejection of books of accounts by the Assessing Officer and estimation of the profit. - Decided against revenue
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