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2021 (5) TMI 752 - ITAT DEHRADUNRejection of books of accounts - NP determination - books of account rejected by the Assessing Officer for the reason that the assessee had failed to produce the relevant vouchers of expenses - HELD THAT:- We are in complete agreement with the observation of the Assessing Officer that since the assessee had failed to produce bills and vouchers relating to the various expenses debited in the Profit and Loss Account, complete and correct profit cannot be deduced from such books of account. Since, the assessee had failed to produce the relevant bills and vouchers, we uphold the action of the Assessing Officer in rejecting the books of account. Although the assessee did not produce the relevant vouchers and bills before the Assessing Officer, at this juncture, it does not appear very feasible to us to remit the matter back to the Assessing Officer for re-examination. In our considered opinion, interest of substantial justice would be served by directing the Assessing Officer to re-compute the net profit @ 4% on sales of ₹ 12,81,85,658/- before deduction of depreciation and interest and remuneration to partners. This will take care of any possible leakages on account of expenses not duly evidenced by bills and vouchers and the interest of the Revenue would be safeguarded. Accordingly, we direct the Assessing Officer to re-compute the income of the assessee by taking 4% of the sales as net profit for the year under consideration and, thereafter, allow deduction of depreciation and remuneration and interest to the partners from such net profit for the purpose of computing the taxable income of the partnership firm. The appeal is disposed off with the directions to the Assessing Officer as above.
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