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2022 (6) TMI 1005 - AT - Income TaxRejection of books of accounts - Estimation of net profit - HELD THAT:- AO rejected the books of account of the assessee since the documents impounded clearly showed that the assessee entered into business transactions with Sky Lark Hatcheries (P) Ltd. and since the assessee did not report these transactions in the regular books of account the explanation of the assessee was rejected. The books were rejected u/s 145(3) and estimated net profit from suppressed sales at 0.45%. AO is justified in rejecting the books of account as the assessee did not reflect the correct picture of its true profits as the consignment sales were not recorded in the regular books of account. The net profit estimated by the Ld. AO @ 0.45% is on higher side. Taking the totality of facts and circumstances into consideration and the net profit percentage shown by RS Poultry and SA Poultry for the AY 2018-19 it would be fair and just to estimate the net profit from the suppressed sales at 0.25%. Thus, the AO is directed to estimate the net profit at 0.25% of the suppressed consignment sales turnover and re-compute the income for the assessment year under consideration. Grounds raised by the assessee are partly allowed.
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