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2021 (5) TMI 532 - AT - Income TaxEstimation of income - bogus purchases - Rejection of books of accounts - HELD THAT:- As abundantly clear that the Assessing Officer, having once rejected the books of accounts, could not have made further additions on account of bogus sundry creditors under section 68 by relying upon the same books of accounts. Therefore, respectfully following the judgment of PCIT Vs. TAYAB YUNUS BARUDGAR [2019 (6) TMI 1226 - GUJARAT HIGH COURT] and AMITABH CONSTRUCTION (P) LTD [2011 (5) TMI 821 - JHARKHAND HIGH COURT] we deleted the addition on account of bogus sundry creditors. As per assessee has disclosed net profit @1.79% of turnover (which was enhanced by ld CIT(A) to 2%), therefore, after rejection of books of accounts the profit may be estimated @1.79% of turnover instead of @ 2% of turnover - We note that ld Counsel has himself accepted the estimate NP @ 2% of total URD purchases by relying on the above judgment of the Coodicate Bench in the case of Shri Tayab Yunus Barudgar [2016 (5) TMI 1288 - ITAT AHMEDABAD] We note that Hon'ble High Court of Gujarat, Ahmedabad in PCIT Vs. TAYAB YUNUS BARUDGAR [2019 (6) TMI 1226 - GUJARAT HIGH COURT] has confirmed the estimate NP @ 2% of total URD purchases Thus as relying on cases above held that to estimate net profit @ 2% of total URD purchases is proper and fair, hence we dismiss ground No. 2 raised by the assessee, and we confirm the order of ld. CIT(A) so far ground no.2 is to estimate the net profit @ 2% on the turnover of the assessee. Appeal of the assessee is partly allowed.
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