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2021 (2) TMI 276 - AT - Income TaxTrading Addition - non consideration of book results - GP estimation - Addition on account of Gross Profit as applied Gross Profit Ratio 8.5% against Assessee firm recorded 7.99% Gross Profit Ratio - HELD THAT:- As decided in own case [2019 (9) TMI 1489 - ITAT JAIPUR] where the assessee company had declared better trading results as compared to previous year and such result provides a reasonable basis to hold that there should not be any addition in the hands of the assessee company. It is also noted that the AO had not detected any defect in the books of the assessee and AO has not invoked the provisions of section 145(3) of the Act for rejecting the books of account of the assessee but made the lumsum/ adhoc addition on account of labour expenses on estimation basis without finding any defects in the books of account and vouchers of the assessee. Hence, relying upon the decision of ITAT Jaipur in the case of Goodwill Impex Ltd vs DCIT [2019 (3) TMI 1456 - ITAT JAIPUR] we are of the view that once the assessee company had declared better trading results as compared to previous year, such results provide a reasonable basis to hold that there should not be any addition in the hands of the assessee company. - Decided in favour of assessee.
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