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2019 (6) TMI 1258 - AT - Income TaxIncome estimation - Extra profit by applying GP Rate at 6% on the basis of average gross profit of other entities engaged in the trade of wholesale liquor business - AO neither pointed out any defect in the books of accounts nor rejected u/s 145 (2) - HELD THAT:- Addition to the book results of the assessee without rejecting the books of accounts. To reject the books of accounts the learned assessing officer must find out latent, patent, and glaring defects in the books of accounts. In the present case, the AO has not found any defect in the books of accounts. Merely on the basis of comparison of gross profit with other parties, he has made the addition to the gross profit of the assessee. The learned departmental representative could not point out any infirmity in the order of the learned CIT (A ) and further failed to justify that without rejecting the books of accounts by finding out the latent, patent and glaring defects in the books of accounts whether the book results which are audited can be disturbed or not. On perusal of the order of the learned assessing officer, we did not find that the learned assessing officer has pointed out any defect in the books of accounts of the assessee. The learned AO also did not make any verification of various expenditure but has merely compared the gross profit of other entities without giving any benefit of difference in the business model, product dealt with, geographical area operated in et cetera. In view of this, we dismiss ground number 1 and 2 of the appeal of the learned assessing officer.
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