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2021 (8) TMI 327 - AT - Income TaxRejection of books of accounts - GP estimation - data shown in the audit report was not co-related with the data shown in the return of income of the assessee - sales of residential unit and sales of open plot of land - HELD THAT:- Assessee has failed to substantiate the discrepancy noted by the Assessing Officer. The assessee has not furnished any detail to clarify and explain the abnormality observed by the Assessing Officer in respect of the various transactions including the sale of open plot of land showing losses during the year under consideration. Even during the course of appellate proceedings before the ld. CIT(A) the assessee has again failed to furnish any additional evidences and relevant detail to clarify the various points and to controvert the additions made during the course of assessment proceedings. Even during the course of appellate proceedings before us the assessee has neither furnished the complete details which was remained to be filed before the Assessing Officer nor specified relevant reasons for not making compliance. We consider that there was no other alternative before the lower authorities than to applying the rate of estimated gross profit on the basis of preceding assessment, however considering the turnover of ₹ 2,97,95,124/- compared to the turnover of ₹ 77,58,677/- shown in the preceding year we consider that it would be reasonable to estimate the gross profit @ 15% as against gross profit estimated @ 18% by the ld. CIT(A). Accordingly, we direct the Assessing Officer to estimate the gross profit @ 15% and make the addition of net profit. In view of the discrepancies as cited above in this order and failure of the assessee for not furnishing the relevant details to establish the correctness and completeness of the account, the ground no. 1 of the assessee against rejecting the books of account u/s. 145(2) is dismissed. - Decided partly in favour of assessee.
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