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2021 (10) TMI 407 - AT - Income TaxRejection of books of accounts - estimation of profits - Assessment of gross profits of the assessee at 2% of gross sales - HELD THAT:- As in this case, the assessee has shown very less profit as against huge turnover. Notices were sent to the parties to verify the purchases/sales. Notices were also issued to the sundry debtors and creditors. None of the sundry debtors confirmed the transactions. Even, most of the notices were received with report of the postal authority “no such firm”. Even one of the party namely Vandana International Export (Jaipur) has categorically denied any kind of financial or trade transaction with the assessee. Under such circumstances, in our view, the action of the Assessing Officer in rejecting the books of accounts was justified. As the assessee did not provide any comparative data in respect of wholesaler of the Tobacco products. Considering the profit rate of the manufacturers, the Assessing Officer estimated the gross profit rate of 2% on the gross sales declared. CIT(A) has also elaborately discussed and justified the action of the Assessing Officer for which we do not find any reason to interfere with. At this stage, the Ld. Counsel for the assessee has submitted that the assessee may be given the deduction of the statutory taxes paid /CST. No justification in this respect as while estimating the gross profits, all the expenditures including the taxes paid have been taken into consideration. There is no merit in the appeal of the assessee.
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