Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1114 - AT - Income TaxRejection of books of accounts - net profit estimation - AO pointed various defects in the books of accounts of the assessee - acceptance of CIT(A) order in earlier year - HELD THAT:- Non-verification of creditor’s ledger account and non-maintenance of stock register raise serious doubts on the amount of profit worked out on the basis of the books of accounts. AO in the assessment order has also pointed out that the assessee should have reported its revenue and profit from the projects following the percentile completion method. Assessee in his written submission has contested the issue of allowing statutory expenses like, depreciation etc. out of the 8% gross profit rate estimated by the Assessing Officer but not contested the issue of rejection of books of account. In view of uncontroverted defects in books of accounts, we don’t find any infirmity in the action of the Ld. CIT(A) in upholding the rejection of books of accounts. Accordingly, we uphold the action of the Assessing Officer in invoking section 145(3) and rejection of books of accounts of the assessee. Sustaining the net profit rate of 5% on works contract subject to depreciation and 3% rate on supply by CIT-A he has followed the finding of his predecessor in the case of the assessee for assessment year 2012-13. Assessee has not brought on record any order of the Tribunal, where this net profit rate applied by the CIT(A) in assessment year 2012-13 has been disturbed. In absence of any contrary order of the higher appellate forum, the order of the CIT(A) for assessment year 2012-13 has become final. No infirmity in the order of the CIT(A) for the year under consideration in following the own comparison of profit results of the assessee upheld by the learned CIT(A) for estimating the net profit from works contract as well as from supply contract. - Decided against assessee.
|