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2021 (7) TMI 200 - AT - Income TaxRejection of books of accounts - various information called for were not submitted by the assessee to AO - GP Estimation - HELD THAT:- We note that there is a clearcut finding given by the ld. CIT(A) that assessee has fabricated books of accounts that is why the books of accounts have been rejected by the Assessing Officer under section 145(3) of the Act. The assessee did not submit required documents during the assessment stage. Assessee has manufactured and fabricated its books of account. The assessee has also fabricated the excise register.We have gone through the order of the ld. CIT(A), in the light of the above narrated facts, and noted that conclusion arrived at by ld CIT(A) does not require interference. Addition on account of alleged fictitious liability and addition u/s 41 - HELD THAT:- As assessing officer has rejected the books of accounts of the assessee under section 145(3) of the Act and gross profit of the assessee was estimated at average gross profit rate of last two years which comes to 22.64% (19.81 + 25.46%). Thus, we note that, once books of account are rejected then it cannot be said that it shall be good for one purpose and not for other and, therefore, no separate addition of alleged fictitious liability and additionunder section 41 of the Act can be made. Therefore, we delete both additions .
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