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2020 (3) TMI 1014 - AT - Income TaxRejection of books of accounts - adoption of 10% GP on the ground that the assessee was unable to provide the manufacturing account as it cannot be made - submission of the assessee that the accounts are audited and no defects were pointed out by the auditors; that due to dispute in the family, the turnover has come down and the GP has also fallen and in subsequent years the business has been closed and, therefore, adoption of such high rate of GP is uncalled - HELD THAT:- No force in the argument of the ld. Counsel for the assessee, especially in absence of non-production of manufacturing account and non-furnishing of details to arrive at the actual value of items consumed and the value of closing stock. However, going by the past results and considering the totality of the facts of the case, we are of the considered opinion that adoption of 4% GP in the instant case will meet the ends of justice. We, therefore, direct the AO to adopt the GP rate of 4% and recompute the disallowance. Addition on account of disallowance of interest - Held that:- neither any specific ground has been taken before the Tribunal nor anything was argued by the assessee on this issue although the assessee in the general grounds of appeal has challenged the entire addition made by the AO. We, therefore, refrain from adjudicating the issue of disallowance of interest made by the AO in the original order. The grounds raised by the assessee are accordingly partly allowed.
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