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2022 (9) TMI 500 - AT - Income TaxRejection of books of accounts - estimation of Net Profit - Reliance on profit returned in the preceding year - no explanation to low profit during the year - HELD THAT:- The assessee has at no point of time given any proper explanation for the huge loss returned by it in the impugned year more particularly when there were profits returned in the preceding year. The explanation furnished ,as reproduced above has been rightly found to be general in nature by the CIT(A) the assessee having only stated that there are several reasons for fluctuation in prices of goods and bought and sold and mentioning only general market condition variations etc. CIT(A) has also pointed out anomaly in the books of the assessee - CIT(A) has rightly upheld the order of the AO rejecting the books of accounts of the assessee and thereafter justifiably estimating net profit on the basis of that returned in the preceding year. Accordingly, all grounds of appeal of the assessee are dismissed.
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