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2021 (12) TMI 435 - AT - Income TaxRejection of books of accounts - GP Estimation - non-production of the VAT return of the creditors - assessee has failed to produce any credible evidence with respect to the three major creditors earlier - HELD THAT:- We do not approve the finding of the learned assessing officer that though the creditors have filed the confirmation of the account, but the learned assessing officer has rejected the same stating that so-called creditors on the address given by the assessee are not available. It could also not have been the reason that the nonproduction of the VAT return of the creditors can result into rejection of the books of accounts. It is merely because on report of the inspector it was found that the creditors were not available at the address given by the assessee, the learned assessing officer has rejected the books of accounts and estimated the profit comparing the results of three different entities. Merely because the VAT return of the suppliers were not produced assessee cannot be burdened with additional tax liabilities when the quantitative details of material purchased and sold which included the material purchased from the suppliers are also accounted for. Undisputedly the accounts of the assessee are audited Under the provisions of Section 44AB of the act. For the subsequent years the learned assessing officer has assessed the assessee Under the provisions of Section 143 (3) of the act and the books of accounts were accepted.In view of this we do not approve the order of the lower authorities rejecting the books of accounts of the assessee and estimating the profit by taking three different entities though in the similar line of business for estimating the income of the assessee. - Decided in favour of assessee.
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