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2021 (2) TMI 70 - AT - Income TaxEstimation of income - Addition on estimate basis - assessee did not file requisite details before A.O - CIT(A) found that since in the preceding assessment year he has estimated the G.P. at 25% after rejecting the books of account, therefore, the G.P. declared by the assessee at ₹ 24% is justified - HELD THAT:- Even though assessee has not filed certain details called for by the A.O. at assessment proceedings, but, no basis is shown as to how the income of the assessee have been estimated at ₹ 2.50 crores. A.O. even while estimating the income has not rejected the book results of the assessee.A.O. has also not brought any material on record to justify higher estimation of income and even no comparable case or history of the assessee have been mentioned. Thus, it was a mere estimation of income without any justification. A.O. has also referred to his order for preceding A.Y. 2010- 2011 while making estimation of income, but, the Ld. CIT(A) on consideration of the details on record found that in preceding assessment year he has rejected the book results of the assessee and estimated the gross profit at 25%. In assessment year under appeal there is a significant fall in the turnover of the assessee and assessee has disclosed G.P. at 24%. The A.O. has not rejected the book results of the assessee even in assessment year under appeal. CIT(A) considering the history of the assessee and nature of the business of the assessee, correctly deleted the addition particularly when books of account have not been rejected in assessment year under appeal. We, therefore, do not find any justification to interfere with the Order of the Ld. CIT(A). - Decided against revenue.
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